Problema Solution
Monterey Bright lights buys a dozen candles for $30 less 20/20. Expenses run 25% of cost, and net profit is expected to be 10% of cost.
A. What should the regular price per candle be? $
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B. What is the maximum markdown that the shop could allow and still break even?
$
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C. What percent markdown would this represent? $
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Answer provided by our tutors
A. Cost = $30
Expenses = 25% = 7.5
Profit = 10% = 3
Total sales = $40.5
Sale price per candle = 40.5/12 = 3.37
B. Maximum markdown = $3 per dozen
C. Percentage =$3/40.5 = 7.41%