Question: Sight and Sound bought large-screen colour TV sets for $1080.00 less 33 13% and 8 13%. Overhead is 18% of regular selling price and required

Sight and Sound bought large-screen colour TV sets for $1080.00 less 33 1⁄3% and 8 1⁄3%. Overhead is 18% of regular selling price and required profit is 15 1⁄3% of regular selling price. The TV sets were marked at a price so that the store was able to advertise a discount of 25% while still maintaining its margin. To clear the inventory, the remaining TV sets were marked down 37 1⁄2%.
(a) What operating profit or loss is realized at the clearance price?
(b) What is the realized rate of markup based on cost?

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