m EXTRA PRACTICE QUIZ WITH WORKED-OUT SOLUTIONS 1. Sunshine Music Shop bought a stereo for $800 and marked it up 30% on selling price. To promote customer interest, Sunshine marked the stereo down 10% for 1 week. Since busi- ness was slow, Sunshine marked the stereo down an additional 5%. After a week, Sunshine marked the stereo up 2%. What is the new selling price of the stereo to the near- est cent? What is the markdown percent based on the original selling price to the nearest hundredth percent? Alvin Rose owns a fruit and vegetable stand. He knows that he cannot sell all his produce at full price. Some of his produce will he markdowns, and he will throw out some produce. Alvin must put a high enough price on the produce to cover markdowns and rotted produce and still make his desired profit. Alvin bought 500 pounds of tomatoes at 16 cents per pound. He expects a 10% spoilage and marks up tomatoes 55% on cost. What price per pound should Alvin charge for the tomatoes? EXTRA PRACTICE QUIZ WITH WORKED-OUT SOLUTIONS Angel Company produces car radios. Given the following, calculate (1) the contribution margin (CM) and (2) the breakeven point (BE) for Angel Company. Fixed cost (FC) $96,000 Selling price (S) per radio $240 Variable cost (VC) per radio $80