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a. Sports Chek? buys a pair of roller blades for $75 and prices them to realize a mark-up of $50. The average operating cost to
a. Sports Chek? buys a pair of roller blades for $75 and prices them to realize a mark-up of $50. The average operating cost to run a Sports Chek store is $1.1MM annually and roller blades represents 2% of total store sales, and is allocated 2% of overhead costs as a result ($22,000). What is selling price? b. What is mark up ($)? C. What is Mark Up % (on cost)? d. Calculate Gross Margin (Mark up on Selling Price)? How does this compare with Sporting Goods industry average gross margin? f. How many roller blades does Sports Check store need to sell to make contribution of 3% net profit margin? e
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