Essay
Due to a recent increase in demand, Office Electronics has been able to sell its most expensive document shredder for a profit of 25%.
Required:
a.If Office Electronics sells the shredder for $250, what is the cost of the shredder assuming a 25% markup?
b.If Office Electronics were to reduce the cost of the shredder to $175, what would be the markup percentage at the $250 sales price?
c.If Office Electronics were to reduce the cost of the shredder to $175, what would be the sales price at a 25% gross margin?
Correct Answer:
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a.$250 ̶ 0.25X = X; $250 ÷ 1.2...View Answer
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