Question 830982: Please help.
A trader buys a good at a cost of $8.00 per unit. Operating expenses are 35% of the selling price and net profit is 15% of the selling price. What is the maximum dollar markdown allowed without incurring an operating loss on the sale of the good?
A. $1.50
B. $2.25
C. $2.40
D. $4.88
Answer by JulietG(1812)   (Show Source):
You can put this solution on YOUR website! Is there more information?
From what's here, any of these answers could be correct, depending upon how much he sells the item for.
Pick a number. He sells his widget for $50. 35%+15% of that is overhead and profit, so half is lost. He makes $25 and the item cost $8, so he's in the black for $17. He can mark the item down $16.99 and still get a profit.
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You can plug in any number here. There must be more information.
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