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Terry's Tees has their new seasons' inventory coming in and they need to clear out their old stock. There's not much left, but they want to at least cover their costs. The shirt's full price was $35.00. Terry's Tees has always offered free shipping, so that $35.00 included the $15.00 shipping & handling fee. Generally, they sell at a gross margin of 75 %. What sale price should they set their tees at to cover their costs?

Terry's Tees has their new seasons' inventory coming in and they need to clear out their old stock. There's not much left, but they want to at least cover their costs. The shirt's full price was $35.00. Terry's Tees has always offered free shipping, so that $35.00 included the $15.00 shipping & handling fee. Generally, they sell at a gross margin of 75 %. What sale price should they set their tees at to cover their costs?

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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Terry's Tees has their new seasons' inventory coming in and they need to clear out their old stock. There's not much left, but they want to at least cover their costs. The shirt's full price was $35.00. Terry's Tees has always offered free shipping, so that $35.00 included the $15.00 shipping & handling fee. Generally, they sell at a gross margin of 75%. What sale price should they set their tees at to cover their costs?
Transcribed Image Text:Terry's Tees has their new seasons' inventory coming in and they need to clear out their old stock. There's not much left, but they want to at least cover their costs. The shirt's full price was $35.00. Terry's Tees has always offered free shipping, so that $35.00 included the $15.00 shipping & handling fee. Generally, they sell at a gross margin of 75%. What sale price should they set their tees at to cover their costs?
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