a. What is the cost per camera (ignoring taxes) for Edward’s Electronics and for Sears?
b. For each store, what is the minimum selling price required to cover cost, over-head, and desired profits?
c. If Edward’s and Sears sell the camera at the MSRP, how much extra profit will each store make?
(1) In dollars?
(2) As a percent of MSRP?
d. What rate of a markdown from MSRP can Edward’s offer to cover its overhead and make its originally intended profit?