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9 Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $50. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage. Required: 1. What selling price does the manager want? Selling price 2. What selling price has Kim calculated? Selling price 3. If there are 49 running shoes, how much will the store lose in sales if the price is not corrected? Loss in sales

9 Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $50. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage. Required: 1. What selling price does the manager want? Selling price 2. What selling price has Kim calculated? Selling price 3. If there are 49 running shoes, how much will the store lose in sales if the price is not corrected? Loss in sales

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9 Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $50. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage. Required: 1. What selling price does the manager want? Selling price 2. What selling price has Kim calculated? Selling price 3. If there are 49 running shoes, how much will the store lose in sales if the price is not corrected? Loss in sales
Transcribed Image Text:9 Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $50. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage. Required: 1. What selling price does the manager want? Selling price 2. What selling price has Kim calculated? Selling price 3. If there are 49 running shoes, how much will the store lose in sales if the price is not corrected? Loss in sales
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