Every morning Neighbor's Restaurant purchases fresh pastries from a local bakery. These cost $.75 each. They are sold to customers for $3.00 each. Whatever rolls do not sell that morning are sold the next day as 'day old' baked goods. The markdown percent is 100%. What is the initial margin percent on the pastries? What is the maintain margin percent? Did Neighbor's Restaurant make a profit on the pastries?

Answer rating: 100% (QA)

To calculate the initial margin percent we first need to find the gross profit per pastry which is t... View the full answer