Question: The Stereo Shop sold a radio regularly priced at $125 for $75. The cost of the radio was $120 less 33 13% and 15%. The

The Stereo Shop sold a radio regularly priced at $125 for $75. The cost of the radio was $120 less 33 1⁄3% and 15%. The store’s overhead expense is 12% of the regular selling price.
(a) What was the rate of markdown at which the radio was sold?
(b) What was the operating profit or loss?
(c) What rate of markup based on cost was realized?
(d) What was the rate of markup based on the sale price?

Step by Step Solution

★★★★★

3.45 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Markdown 12500 7500 5000 Rate of markdown 500012500 04 40 b Cost 06... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

726-B-F-F-M (1336).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

The Music Store paid $14.95 for a DVD. Expenses are 21% of regular selling price and the required profit is 11% of regular selling price. During an inventory sale, the DVD was marked down 20%. (a)...

A hardware store paid $33.45 for a set of cookware. Overhead expense is 15% of the regular selling price and profit is 10% of the regular selling price. During a clearance sale, the set was sold at a...

A retail store paid $44 for a microwave oven. Expenses are 27% of regular selling price and the required profit is 18% of regular selling price. During an inventory sale, the microwave was marked...

8. The stereo shop sold a radio regularly priced at $125 for $105. The cost of the radio was $120 less 33 12% and 15%. The store's overhead expense is 12% of the regular selling price. a) What was...

Sportchek sold a hockey stick regularly priced at $ 125 for $ 105 . The cost of the item was $ 120 less 33.3 % and 15 % Sportchek's overhead expense is 12 % of the cost . What was the operating...

2.23 Cost of capital (40%) Calculate the company?s cost of equity using various methods (at least 2); showing your calculations and detailing the source of your data. Calculate the company?s cost of...

Just one part of the assignment, Thank you! 2.22 Risk-return analysis (40%) What are the risks of this company? (Where is this risk coming from (market, firm, industry or currency)? How is the risk...

An item purchased by retailer has a list price of $145 and is subject to trade discounts of 15% and 10%. The item was sold for $175 by the retailer. What is the rate of markup based on selling price?...

hi could you help with this assignment? i am hard time finding the fraud thanks Student Handout 1. Tallahassee BeanCounters organizational chart Franklin Kennedy Owner Phil Ackers President $95,000...

please complete sheets 7-11 attached bellow are supporting information for questions A1 X fx E B D 15 Division N has decided to develop its budget based upon projected sales of 33,000 lamps at 16...

Assume that you are in a large, urban school district that has several challenges facing it. You are on a committee of ten (10) people, including administrators, teachers, and concerned community...

What are the ways by which ES justify their knowledge?

The two divisions that make up MOST finance departments are ________. Group of answer choices sales and product management accounting and product management sales and financial management accounting...

Comparing some predicted values. Consider two homes, both with 1400 ft2. Suppose the first has an extra half bath and the second does not. Find the predicted price for each home and then find the...

Claus Enterprises has 174,000 shares of common stock outstanding at a current price of $46 a share. The firm also has two bond issues outstanding. The first bond issue has a total face value of...

Building an Income statement. Lifetime, Inc. has sales of $585,000, costs of $273, 000, depreciation expense of $71,000, interest expense of $38,000, and a tax rate of 35%. What is the net income for...

1. Pick an aisle in a grocery store; for example, the cereal or snack aisle, or a specific food (yogurt or baby food, etc.). Analyze the segments that are targeted and be detailed in your response....

Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales $8,500 Less: Cost of goods sold 7,140 Less: Depreciation 420 Earnings before interest and taxes 940 Less: Interest paid 74 Taxable...

Maturity Risk Premium The real risk-free rate is 2.25%, and inflation is expected to be 3.75% for the next 2 years. A 2-year Treasury security yields 9.75%. What is the maturity risk premium for the...

The following is the Treasury bond quote as of March 26th, 2021. Assume the face (par) value of the Treasury bond is $100,000 and the bond pays interest semiannually. Answer the following, will...