A pair of noise-cancelling headphones 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 headphones at cost?

Question

A pair of noise-cancelling headphones 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 headphones at cost?

Quizplus · Accepted Answer

The Answer of A pair of noise-cancelling headphones 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 headphones at cost?

A Pair of Noise-Cancelling Headphones Retails for $349