A merchant prices his inventory to allow for operating expenses at 30% of selling price and an operating profit of 20% of selling price. If an item is priced at $49.95, determine:
a. The rate of markup on selling price
b. Its cost
c. The rate of markup on cost

Question

Quizplus · Accepted Answer

The Answer of A merchant prices his inventory to allow for operating expenses at 30% of selling price and an operating profit of 20% of selling price. If an item is priced at $49.95, determine:
a. The rate of markup on selling price
b. Its cost
c. The rate of markup on cost

A Merchant Prices His Inventory to Allow for Operating Expenses