Reference no: EM133116759

Puja, a college student, enjoyed this chapter on the Mathematics of Merchandising and wanted to see for herself how a product moves through the merchandising cycle from a manufacturer to a consumer. During her 2020 summer holidays, she decided to study the merchandising cycle at her aunt's sporting equipment store that was located in Vancouver. While she was at the store, she purchased 1000 ski helmets that were listed for $110 each, less 10%, 8%, and 6% from a manufacturer in Montreal. The store's operating expenses were 35% on selling price and rate of markup was 60% on selling price. The store sold 400 helmets at the regular selling price. During a sale, it offered a markdown of 20% and sold another 250. It sold another 200 helmets at the break-even price and the remaining at cost.

Answer the following questions by rounding to two decimal places, wherever applicable.

a. What was the cost per helmet to the store?

b. What was the net amount of discount received on the purchase of the helmets from the manufacturer?

c. What was the equivalent discount rate that represents the three trade discount rates?

d. What was the regular selling price per helmet at which 400 helmets were sold?

e. What was the sale price per helmet at which 250 helmets were sold?

f. What was the break-even price per helmet at which 200 helmets were sold?

g. What was the rate of markdown from the regular selling price that would price the helmet to sell at break-even?

h. What was the rate of markdown from the regular selling price that would price the helmet to sell at cost?

i. What was the total profit or loss from the sale of the 1000 helmets?