A retail store purchased 180 shirts for $35 each. It sold 120 shirts at a markup of 60% on cost. During a sale, it sold another 40 shirts at a markup of 20% on cost. A few months later, it sold the remaining shirts at 25% below cost to clear the inventory.

a. What was the selling price of each of the 120 shirts, 40 shirts, and 20 shirts?

b. If the overhead expenses are 20% on cost, what was the total operating profit?

AppendixLO1