Question

Hi. I need assistance with this financial math question. Thanks :)

A clothing store buys scarves for $34.00 less 22% for buying over 50 pairs, and less a further 15–% for buying last season's style. The scarves are then marked up to cover overhead expenses of 33% of cost and a profit of 337% of cost. (a) What is the regular selling price of the scarves? b) What is the maximum amount of markdown to break even? (c) What is the rate of markdown if the scarves are sold at the break-even price? (a) The selling price is $ . (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The amount of the markdown to break even is $ ]. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The rate of markdown to break even is. %. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

Cost of scarf = 34*(1-22%)*(1-15.25%)

= $22.4757

Regular Selling price = 22.4757 + 22.4757*33% + 22.4757*33.25% = $37.37 per unit

b.Maximum Mark down = Profit element = 22.4757*33.25% = $7.47

c.Rate = 7.47/37.37 = 19.99%