Asked by Elise Weidman on Apr 28, 2024
Verified
Ski 'n Cycle purchased Elan 200 skis for $492 per pair and priced them to give a rate of mark-up on selling price of 40%. When this model was discontinued, the store marked down its remaining stock by 30%. What was the sale price after the markdown?
Elan 200 Skis
A specific model of skis produced by the Elan brand, known for its performance and design.
Mark-up
Elevating the base cost of merchandise to reimburse for overhead activities and profit.
Markdown
A reduction from the original price of an item to increase its attractiveness to buyers.
- Figure out the markup rate based upon both the cost and the selling price.
- Ascertain and quantify the implications of price cuts on profitability levels.
Verified Answer
EB
Learning Objectives
- Figure out the markup rate based upon both the cost and the selling price.
- Ascertain and quantify the implications of price cuts on profitability levels.