Asked by Booshy Marie on Jun 14, 2024
Verified
A pair of noise-cancelling headphones retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16 23\frac{2}{3}32 % of cost.
a) What is the largest amount of markdown that will allow the dealer to break even?
b) What rate of markdown will price the headphones at cost?
Noise-cancelling Headphones
Headphones that reduce unwanted ambient sounds using active noise control technology.
Markdown
A reduction from the original or list price of goods, often to encourage sales.
- Assess the consequence of fixed expenses on the determination of prices and profit levels.
- Evaluate and compute the necessary discount rate to attain specific profit objectives or break-even levels.
Verified Answer
AB
Learning Objectives
- Assess the consequence of fixed expenses on the determination of prices and profit levels.
- Evaluate and compute the necessary discount rate to attain specific profit objectives or break-even levels.
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