Harold, the owner of Sweet Tunes Music, purchased acoustic guitars for $90 each and has marked them up by 21.00% of the cost. The overhead expenses were 10.00% of the cost. a. What is the regular selling price of each guitar? b. What is the profit made on each guitar sold? c. If he decides to offer a markdown of 4.00%, what would be the reduced selling price? d. After reducing the selling price, what profit or loss he would make on the sale of each guitar?
Harold, the owner of Sweet Tunes Music, purchased acoustic guitars for $90 each and has marked them up by 21.00% of the cost. The overhead expenses were 10.00% of the cost. a. What is the regular selling price of each guitar? b. What is the profit made on each guitar sold? c. If he decides to offer a markdown of 4.00%, what would be the reduced selling price? d. After reducing the selling price, what profit or loss he would make on the sale of each guitar?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Harold, the owner of Sweet Tunes Music, purchased acoustic guitars for $90 each and has marked them up by 21.00% of the cost. The overhead expenses were 10.00% of the cost.
a. What is the regular selling price of each guitar?
b. What is the profit made on each guitar sold?
c. If he decides to offer a markdown of 4.00%, what would be the reduced selling price?
d. After reducing the selling price, what profit or loss he would make on the sale of each guitar?
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