A snow blower retails for $489. The dealer's overhead is 20% 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 snow blower at cost?

Question

A snow blower retails for $489. The dealer's overhead is 20% 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 snow blower at cost?

Quizplus · Accepted Answer

The Answer of A snow blower retails for $489. The dealer's overhead is 20% 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 snow blower at cost?

A Snow Blower Retails for $489