A local produce stand decided to extend their season by selling Christmas trees in November and December. The stand's owner purchased 500 locally grown Christmas trees. They cost $10 each, and were priced at $50 each. Unfortunately, the trees did not sell as well as expected and the owner needed to take markdowns of 65% to sell them. 

What is the initial margin percent on the Christmas trees? 

What is the maintain margin percent? 

If the produce stand in Q2 made sales of $8,000, what were their maintain margin $? Did the produce stand make a profit? 

Would you suggest they try selling Christmas trees again next year? Why or why not?A buyer has purchased 5,000 units of a new product. The product costs $4.00 per unit. If the buyer needs an initial margin of 35%, what should be the initial retail price on this product