Question

The s Quick Check What is the markuap on a seeepine bag Quick Check Ski boots originally priced at $289.99 were marked down 40 di Quick Check A propane forced-air heater normally selling for %290 is marked dow 25% f the heater is $220 and the operating expenses are 15% of cost, find la) the operating os and the absolute loss.

Answer 1

operating loss = break even point - new selling price

break even point = cost + operating expenses

= 220 + 15% of cost

= 220 + 33

= $253

new selling price is marked sown by 25%,

new selling price = 290 - (290*25%)

= $217.5

thus operating loss = 253 - 217.5 = $35.5 operating loss by selling price being marked down byb 25%

absolute loss = cost - adjusted selling price

= 220 - 217.5 = $2.5 is absolute loss on adjusted selling price

thank you.