. The cost of a window air conditioner was $350. During a spring promotion, the selling price was reduced by $150. The required overhead expenses and operating profit for the air conditioner are 25% and 15% of selling price respectively. a) What is the regular selling price? b) What is the break-even price? c) What is the profit (loss) at the sale price?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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. The cost of a window air conditioner was $350. During a spring promotion, the selling
price was reduced by $150. The required overhead expenses and operating profit for
the air conditioner are 25% and 15% of selling price respectively.
a) What is the regular selling price?
b) What is the break-even price?
c) What is the profit (loss) at the sale price?
3. Frigid Boards purchases one of its snowboards for $395 less a retail trade discount of
15% and a loyalty discount of 4%. Its markup on selling price percentage on all
snowboards is 21%. At the end of the season, any leftover snowboards are marked
down by 10%. What is the sale price of snowboard?
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