Deep Discount Audio buys home theatre systems for $3 895 less 29%, 15%. Expenses are 30% of the regular selling price and the required profit is 41% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 35% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 40%. What operating profit or loss does the store make on items sold during the sale?

Question

Quizplus · Accepted Answer

The Answer of Deep Discount Audio buys home theatre systems for $3 895 less 29%, 15%. Expenses are 30% of the regular selling price and the required profit is 41% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 35% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 40%. What operating profit or loss does the store make on items sold during the sale?

Deep Discount Audio Buys Home Theatre Systems for $3 895