Asked by Timmy Nickel on Jun 30, 2024
Verified
The Shoe Shop's normal rate of mark-up on selling price is 45%. What rate of markdown can the store offer on a pair of shoes normally priced at $140, and still realize a 20% rate of mark-up on cost at the sale price?
Mark-up
The sum added onto the purchase price of products to cover both overhead expenses and profit, establishing the retail price.
Markdown
A reduction in the regular selling price of a product or service.
- Compute the markup considering the cost and subsequent selling price.
- Analyze and estimate the markdown percentage needed to reach predetermined profit targets or break-even calculations.
Verified Answer
GM
Learning Objectives
- Compute the markup considering the cost and subsequent selling price.
- Analyze and estimate the markdown percentage needed to reach predetermined profit targets or break-even calculations.
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