A sports club purchased two dozen pairs of skate at a cost of $1980. Operating e
ID: 2903217 • Letter: A
Question
A sports club purchased two dozen pairs of skate at a cost of $1980. Operating expenses for the store are 22% of the cost, while the total markup on this type of product is 34% of the selling price. Only 6 pairs of the skates sell at the original price, and the manager decides to mark down the remaining skates. The price is reduced 25% and 6 more pairs sell. The remaining 12 pairs of skates are marked down to 50% of the original selling price and are finally sold.
1.Find the original selling price of each pair of skates.
2.Find the total of the selling prices of all the skates.
3.Find the operating loss
4.Find the absolute loss
Explanation / Answer
Answer 1.
purchase price= $1980
operating exp. 22% = 436.04
markup 34 %= 531.52
total price= 1980+436.04+531.52=2947.56 for two dozzen
so one pair price = 2947.56/24= $122.815
Answer 2.
the total of the selling prices of all the skates= (122.815X6)+ (92.111X6)+(61.407X12)= $1996.44
Answer 3.
the operating loss = 2416.04-1996.44 = $419.6
Answer 4.
the absolute loss = 2947.56-1996.44 = $951.12
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