Calculate the rate of markdown

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Question 1 - A manufacturer sells a product for $200 per unit. The variable costs are $120 per unit and the fixed costs are $50,000 per month.

a. How many units would the manufacturer have to sell per month to break even?

b. If the fixed costs are increased by 10% and the variable costs are increased by 15%, what should be the new selling price to have the same break-even volume per month?

Question 2 - A store purchases a product for $2.50 each and sells it with a markup of 14% on cost. To clear inventory, the store sells the product at cost. Calculate the rate of markdown.

Reference no: EM132461680

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