Asked by Lauren Chavis on Jul 06, 2024
Verified
An item is purchased for $300, less 35%, 20%, and 10%. The selling price is set so that estimated overhead expenses are 30% of the selling price, and operating profit is 25% of the selling price. What is the breakeven price of the item?
Breakeven Price
The amount of money for which selling a product or service neither results in a profit nor a loss.
Overhead Expenses
Costs that are not directly associated with the production of goods or services, such as rent, utilities, and administrative expenses.
Operating Profit
The income generated from the primary activities of a business before subtracting any tax and interest expenses.
- Develop proficiency in and apply different percentage calculations in the realm of retail pricing, which involves markdowns, markups, and discounts.
- Determine the breakeven price for retail items.
Verified Answer
Learning Objectives
- Develop proficiency in and apply different percentage calculations in the realm of retail pricing, which involves markdowns, markups, and discounts.
- Determine the breakeven price for retail items.
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