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A Snow Blower Retails for $489 23\frac{2}{3} % of Cost
A) What Is the Largest Amount of Markdown That

Question 217

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A snow blower retails for $489. The dealer's overhead is 20% of cost, and normal operating profit is 16 23\frac{2}{3} % of cost.
a) What is the largest amount of markdown that will allow the dealer to break even?
b) What rate of markdown will price the snow blower at cost?

Correct Answer:

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a) $59.63 ...

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