7. A smartphone cost a retailer $820.00 less a series discount of 31.5%, 7%. The regularselling price is $799.00. The dealer's overhead is 18% of the regular selling price and thesmartphone is eventually marked down and sold for $658.75.(a) Determine the amount of markup (in dollars) the dealer applies to each smartphone to sellat the regular price. Round answer to two decimal places.(b) What is the markup rate based on regular selling price? Round final answer to onedecimal place.(c) What was the rate of markdown? Round final answer to one decimal place.(d) What was the operating profit or loss at the mark down price? Indicate clearly if it is a profitloss.

Cost of Smartphone to Retailer $ 820.00 Regular Selling Price $ 799.00 Overhead is 18%…

Answered: (a) Determine the amount of markup (in…

(a) Determine the amount of markup (in dollars) the dealer applies to each smartphone to se at the regular price. Round answer to two decimal places.

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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Question

7. A smartphone cost a retailer $820.00 less a series discount of 31.5%, 7%. The regular
selling price is $799.00. The dealer's overhead is 18% of the regular selling price and the
smartphone is eventually marked down and sold for $658.75.
(a) Determine the amount of markup (in dollars) the dealer applies to each smartphone to sell
at the regular price. Round answer to two decimal places.
(b) What is the markup rate based on regular selling price? Round final answer to one
decimal place.
(c) What was the rate of markdown? Round final answer to one decimal place.
(d) What was the operating profit or loss at the mark down price? Indicate clearly if it is a profit
loss.

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