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Question - Rachel buys sculptures from Toronto and sells them in her studio in Vancouver. He purchases the sculptures from a gallery in Toronto for $5,000, less discounts of 20% and 9%. His overhead expenses are 8.5% on the cost and he would like to make a profit of 40% on the cost of the sculptures.
a. Calculate the regular selling price of the sculptures.
b. Calculate the Rachel's profit or loss if he offers a markdown of 21%.
c. Calculate the maximum markdown rate Rachel can offer to sell at break-even price.
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