Reference no: EM132521850

Questions -

Q1. A distributor purchased 400 golf sets at $450 each. The markup is 40% of the cost and overhead expense is 25% of the cost. It sold 35% of the sets at the regular selling price, 50% of the remaining sets at a discount of 20%, and the remaining sets at the cost price. Find the overall profit or loss on the sale of the golf sets.

Q2. Chelsea purchases office furniture from a wholesaler listed at $800, less discounts of 25% and 5%. She has overhead expenses of 17% of the cost and wants to have an operating profit of 45% of the cost.

a) Calculate the regular selling price of the office furniture.

b) After listing the furniture for one month, she marked it down by 18%. Calculate the profit or loss that she made at the reduced selling price.

c) What is the maximum rate of markdown that she can offer so that she breaks even on the sale?

Q3. A distributor sells water cooling units for $850 each. The operating profit is 20% on cost and markup is 55% on cost.

a) Calculate the cost per cooling unit.

b) Calculate the rate of markdown offered during a sale if it made a profit of $55.40 per machine.

c) What should be the rate of markdown offered to sell the machines at the cost price?