Question
The Nursery bought 800 plants auctioned off en bloc for $5550.00 This means that each plant has the same cost. On inspection, the plants were
The Nursery bought 800 plants auctioned off en bloc for $5550.00 This means that each plant has the same cost. On inspection, the plants were classified as normal quality, seconds, and substandard. The 420 normal quality plants were sold at a markup of 85% of cost, the 290 plants classified as seconds were sold at a markup of 21% of cost, and the plants classified as substandard were sold at 83% of their cost. a) What was the unit price at which each of the three classifications was sold? b) If overhead is 23% of cost, what was the amount of profit realized on the purchase? c) What was the average rate of markup based on the selling price at which the plants were sold?
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