A furniture store has a standard mark-up on cost for one of its lounge suites. During a particular month it sold 20 lounge suits
A furniture store has a standard mark-up on cost for one of its lounge suites. During a particular month it sold 20 lounge suits for R1 500 each. The price represents a mark-down of 20% on the normal selling price. Ignore VAT. (a) (b) (c) (d) (e) Calculate the normal selling price per suite. Calculate the cost price per suite. Calculate the standard mark-up on selling price. Calculate the gross profit per month. Compute the actual gross profit percentage and explain why it differs from the standard mark-up on selling price.
Step by Step Solution
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Step: 1
a To calculate the normal selling price per suite we need to find the original selling price before the 20 markdown Lets assume the normal selling pri...
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Step: 2
Step: 3
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Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
