A furniture store has a standard mark-up on cost for one of its lounge suites. During...
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A furniture store has a standard mark-up on cost for one of its lounge suites. During a particular month it sold 20 lounge suits for R1 500 each. The price represents a mark-down of 20% on the normal selling price. Ignore VAT. (a) (b) (c) (d) (e) Calculate the normal selling price per suite. Calculate the cost price per suite. Calculate the standard mark-up on selling price. Calculate the gross profit per month. Compute the actual gross profit percentage and explain why it differs from the standard mark-up on selling price. A furniture store has a standard mark-up on cost for one of its lounge suites. During a particular month it sold 20 lounge suits for R1 500 each. The price represents a mark-down of 20% on the normal selling price. Ignore VAT. (a) (b) (c) (d) (e) Calculate the normal selling price per suite. Calculate the cost price per suite. Calculate the standard mark-up on selling price. Calculate the gross profit per month. Compute the actual gross profit percentage and explain why it differs from the standard mark-up on selling price.
Expert Answer:
Answer rating: 100% (QA)
a To calculate the normal selling price per suite we need to find the original selling price before the 20 markdown Lets assume the normal selling pri... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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