Aldo’s Shoes bought a shipment of 200 pairs of women’s shoes for $42 per pair. The store sold 120 pairs at the regular selling price of $125 per pair, 60 pairs at a clearance sale at a discount of 40%, and the remaining pairs during an inventory sale at a price that equals cost plus overhead (i.e., a break-even price). The store’s overhead is 50% of cost.
(a) What was the price at which the shoes were sold during the clearance sale?
(b) What was the selling price during the inventory sale?
(c) What was the total profit realized on the shipment?
(d) What was the average rate of markup based on cost that was realized on the shipment?