A designer purchased 70 dresses from an overseas tailor for $140 each. When the shipment arrived, she identified 40 of the dresses to be of very high quality, 20 of medium quality, and the remaining of low quality. She sold the high quality dresses at an 80% markup on cost, the medium quality dresses at 40% markup on cost, and the low quality dresses at 10% below cost.

a. What was the selling price of each of the high, medium, and low quality dresses?

b. If the overhead expenses are 30% on cost, what was the total operating profit?

AppendixLO1