Question 830982
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.