Question

Sketetal Income Statement Dollars 100% Retail Price - Cost Retail Price (=) Gross Margin % (+) Sales (retail) (-) Cost of Sal

I honestly just don't know how to set up the formulas to get the desired answers.

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Answer #1

1)

Retail price - cost Gross margin = ? Retail price

0.30 = Retail price - $3500 Retail price

Retail price = $ 3500 \div (1 - 0.30 )

Retail price = $ 5000

Average price per iPod = $ 5000 \div 125

Average price per iPod = $ 40

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2)

Retail price - cost Gross margin = ? Retail price

0.74 = Retail price - $256 Retail price

Customer's price = $ 256 \div ( 1 - 0.74)

Customer's price = $ 984.62

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3)

Retail price - cost Gross margin = ? Retail price

0.58 = $1299 - cost $1299

Cost to produce = $ 1299 - 0.58 \times $ 1299

Cost to produce = $ 545.58

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4)

Markup % = Retail price -cost cost

$599.99 - $136.65 Markup % = $136.65

Markup % = 339.1%

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5)

Retail price - cost Gross margin = ? Retail price

0.66 = Retail price - $200 Retail price

Customers price = $ 200 \div ( 1 - 0.66)

Customers price = $ 588.24

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