A lawn mower retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16
% 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 lawn mower at cost?

Question

A lawn mower retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16
  % 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 lawn mower at cost?

Quizplus · Accepted Answer

The Answer of A lawn mower retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16
  % 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 lawn mower at cost?

A Lawn Mower Retails for $349