A small retail store buys merchandise from a supplier at a cost of $8 per unit. The store sells the merchandise for $15 per unit. The store owner is considering offering a discount of 10% to customers who buy at least 10 units of merchandise. The store currently sells an average of 500 units of merchandise per month.

a. What is the store's gross profit margin on each unit of merchandise sold?
b. How much additional revenue (or loss) would the store make each month if it offered the 10% discount to customers who buy at least 10 units of merchandise?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Gross profit margin is the difference between the selling price and the cost of goods s... View the full answer