Question

Wing's Electronics purchased 80 speakers from the manufacturer for $300 each less discounts of 25% and 12%. The regular markup on the speakers is 60% of the regular selling price, and Wing's overhead is 10% of the regular selling price. On the Black Friday sale, the sales price was reduced to $297.

(a)What was Wing’s cost for each speaker? (2 mark)

(b)What was the regular selling price? (2 mark)

(c)What was the rate of markdown for the sale?

(d)What was the profit or loss on each speaker at the sale price?

Answer 1

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Wing's
Answer 1	Amount $	Note
Purchase price	300.00	A
Less: Discount at 25%	75.00	B=A*25%
Price after discount at 25%	225.00	C=A-B
Less: Discount at 12%	27.00	D=C*12%
Net purchase cost of each speaker	198.00	E=C-D
Answer 2
Let regular selling price is 100X
So markup is 60% i.e.	60X
Overhead is 10% i.e.	10X
Purchase cost will be 100X-60X-10X=	30X
So,
30X=	198.00
X=	198/30
X=	6.60
Regular selling price	100X
Regular selling price	100*6.60
Regular selling price	660.00
So, regular selling price	660.00	F
Answer 3
Regular selling price	660.00	See F
Black Friday sale price	297.00	G
Markdown amount	363.00	H=F-G
Markdown rate	55.00%	I=H/F
Answer 4
Regular selling price	660.00	See F
Overhead at 10%	66.00	J=F*10%
Add: Net purchase cost of each speaker	198.00	See E
Total cost of each speaker	264.00	K=J+E
Black Friday sale price	297.00	See G
Profit on each speaker at the sale price	33.00	L=G-K