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A Merchant Prices His Inventory to Allow for Operating Expenses

Question 128

Short Answer

A merchant prices his inventory to allow for operating expenses at 30% of selling price and an operating profit of 20% of selling price. If an item is priced at $49.95, determine:
a. The rate of markup on selling price
b. Its cost
c. The rate of markup on cost

Correct Answer:

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a) 50.0%
b...

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