The Cell Kios buys Android smartphones at $550 less 40% and 10%. The price is marked up to allow for overhead of 50% of cost and profit of 35% of cost. The unit on display in the store is scratched. What rate of markdown from the regular price can the store offer if it is to recover only half of the unit overhead costs?

Overhead Costs

Expenses associated with running a business that are not directly tied to the production of goods or services, such as rent, utilities, and administrative costs.

Profit

The financial gain achieved when the amount of revenue gained exceeds the expenses, costs, and taxes needed to sustain the activity.

Markdown

A reduction in the selling price of goods or services, often to clear old stock or to beat competitors.