Reference no: EM133035590

Blue Lake Marina regularly sells a make of cruiser for $13,456. This regular selling price covers expenses of 15% of cost and a normal profit of 8% of cost.

The cruisers were marked with an (artificially inflated) new regular selling price so that the marina can offer a 17% discount while still maintaining it regular gross profit.

At the end of the boating season, the cruiser was marked down. The marina made 25% of its usual profit and reduced the usual commission paid to the sales personnel by 33&1/3%. The normal commission accounts for 50% of the normal expenses. (Do not include the $ sign, or the , to indicate thousands.)

a.) Find the Cost. Answer

b.) Find the (artificially inflated) New Regular Selling Price. Answer

c.) Calculate the usual profit. Answer

d.) Calculate the reduced profit at the end of the boating season. Answer

e.) Calculate the usual expenses. Answer (This is total expenses, including both the overhead and the commission.)

f.) Calculate the usual overhead. Answer (In this question they have separated overhead: heat, rent, phone, taxes, etc, from the commission paid to the sales people.)

g.) Calculate the usual commission. Answer (This is half of the usual commission.)

h.) Calculate the reduced commission at the end of the boating season. Answer

i.) Find the End of Season Price. Answer

j.) What was the rate of markdown? (Correct to 3 decimal places.) Answer (Do not include the % sign.)