Question
Aldo Shoes bought a shipment of 200 pairs of women's shoes for $42 per pair. The store sold 120 pairs at the regular selling price
Aldo Shoes bought a shipment of 200 pairs of women's shoes for $42 per pair. The store sold 120 pairs at the regular selling price of $125 per pair, 60 pairs at a clearance sale at a discount of 40%, and the remaining pairs during an inventory sale at a price that equals cost plus overhead (ie-break event price). The store's overhead is 50% of cost
a) What is the price at which the shoes were sold during the clearance sales?
b) What is the selling price during the inventory sales?
c) What is the total profit realized on the shipment?
\d) What was the average rate of markup based on cost that was realized on the shipment?
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