1. A retailer prices her goods to cover operating expenses at 30% of cost and to generate a profit of 20% of cost. For an item she buys from her wholesaler at $49, determine:

a. (2 points) Its selling price.

b. (2 points) The rate of markup on cost

c. (2 points) The rate of markup on selling price

3. (3 points) Morgan's Department Store mailed out 15%-off coupons for its 20th Anniversary Sale. The coupons may be used for any products in the store. For items already on sale, the coupon applies to the sale price.

a. What price would a coupon-holder pay for a bedspread (regular price $295) already on sale at 20% off?

b. What single rate of markdown would have the same effect as the two price reductions?

4. (4 points) United Furniture buys reclining rocking chairs at $550 less 40% and 10%. The price is marked up to allow for overhead of 50% of cost and profit of 35% of cost. The unit on display in the store acquired a stain. What rate of markdown from the regular price can the store offer on the display unit if it is to recover only half of the unit overhead costs?