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A Retail Chain Sells 100 Designer Sheet Sets for $199

Question 198

Essay

A retail chain sells 100 designer sheet sets for $199.99 a set; the company purchased these sheet sets at $69.95 per set.The company also sells 1,000 basic sheet sets for $49.99 a set.The company purchased these sheet sets at $24.99 per set.Operating expenses equal $10,000.
Required:
Part a.Calculate the gross profit percentages of each product (rounded to the nearest whole number).
Part b.Calculate the total gross profit.
Part c.Calculate income before income tax expense

Correct Answer:

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Part a
Gross profit percentage = [(Net s...

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