Due to a recent increase in demand, Office Electronics has been able to sell its most expensive document shredder for a profit of 25%.
Required:
a.If Office Electronics sells the shredder for $250, what is the cost of the shredder assuming a 25% markup?
b.If Office Electronics were to reduce the cost of the shredder to $175, what would be the markup percentage at the $250 sales price?
c.If Office Electronics were to reduce the cost of the shredder to $175, what would be the sales price at a 25% gross margin?

Question

Quizplus · Accepted Answer

The Answer of Due to a recent increase in demand, Office Electronics has been able to sell its most expensive document shredder for a profit of 25%.
Required:
a.If Office Electronics sells the shredder for $250, what is the cost of the shredder assuming a 25% markup?
b.If Office Electronics were to reduce the cost of the shredder to $175, what would be the markup percentage at the $250 sales price?
c.If Office Electronics were to reduce the cost of the shredder to $175, what would be the sales price at a 25% gross margin?

Due to a Recent Increase in Demand, Office Electronics Has