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Home System Alarms Buys Wireless Alarm Systems for $4000

Question 83

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Home System Alarms buys wireless alarm systems for $4000.00 less 30%, 10%. Expenses are 25% of the regular selling price and the required profit is 20% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 40% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 25%. What operating profit or loss does the store make on items sold during the sale?

Correct Answer:

verifed

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C = 4000(1 - .30)(1 - .10) = $2 520
C + ...

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