Question

Wing's Electronics purchased 80 speakers from the manufacturer for $300 each less discount of 37% . The regular markup on the speakers is 60% of the regular selling price, and Wing's overhead is 10% of the regular selling price. On the Black Friday sale, the sales price was reduced to $297.

(a)What was Wing’s cost for each speaker? (2 mark)

(b)What was the regular selling price? (2 mark)

(c)What was the rate of markdown for the sale?

(d)What was the profit or loss on each speaker at the sale price?

Answer 1

Let's solve

The purchase cost is

300 - 37%of 300 = 300-111 = 189

The regular Mark up is 60% which means the cost is 40% out of which 10% is overhead so the balance 30% is purchase cost $189

So the selling price = 189/30% = 630

Cost per speaker = Purchase cost + 10% of selling price

= 189 + 63 = 252

The rate of mark down for the black Friday sale is

630-297 = 333

The profit on each sale on black Friday sale is

297-252 = 45

So the answers are

a)$252

b)$630

c)$333

d)$45