1. Homeland Hardware buys inventory for $6 less 20% per item. The stores overhead is 45% of cost and the owner requires a profit of 20% of cost.

1. For how much should the item be sold?
2. What is the amount of markup included in the selling price?
3. What is the rate of markup based on selling price?
4. What is the rate of markup based on cost?
5. What is the break-even price?
6. What operating profit or loss is made if an item is sold for $6?