Asked by Logan MacNeil on May 01, 2024
Verified
Worker's World bought 250 pairs of rubber boots at $15 per pair. The manager applies a 90% rate of mark-up on cost when pricing footwear. What is the operating profit per pair if overhead expenses work out on average to be 20% of the selling price?
Rubber Boots
Footwear made of rubber, designed to be waterproof, typically used during rainy weather or in wet environments.
Mark-up
A premium added to the cost price of items to compensate for fixed costs and profit.
- Identify the markup by examining the cost and the selling price.
- Investigate the role of overhead in shaping pricing structures and profit outcomes.
- Understand the relationship between operating profit, overhead, and mark-up in retail settings.
Verified Answer
SB
Learning Objectives
- Identify the markup by examining the cost and the selling price.
- Investigate the role of overhead in shaping pricing structures and profit outcomes.
- Understand the relationship between operating profit, overhead, and mark-up in retail settings.