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Question: A hosiery buyer plans to purchase 7,200 pairs of socks for a pre-Christmas sale. The unit retail price is planned at $7.50, and the markup goal for the purchase is 59%. The buyer purchases 4,800 pairs at the Sock Company showroom, at a cost of $3.15 each.
a. What is the maximum total cost the buyer can pay for the balance of the total purchase?
b. What will be the average cost per pair for the socks (2400 socks) yet to be purchased?
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