Gerry runs a clothing store in London. He recently purchased 1200 dress shirts that had manufacturer's list price of %55 per shirt. On each shirt there was a trade discount of 20% 10% and 5% from the manufacturer. Gerry's store has operating expenses that are 20% of the selling price and rate of markup is 50% on selling price. a. What was the cost per shirt to the store? b. What was the total amount of discount received on the purchase of the 1200 shirts from the manufacturer? c. What was the equivalent discount rate of the 20% 10% and 5% trade discounts? d. He sold 400 shirts at the regular selling price e. What was the total revenue from the 400 shirts sold?

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter2: Computing Wages And Salaries
Section: Chapter Questions
Problem 21PB: Maria Cohen is employed as a salesperson in the mens department of Lees Fashions. In addition to her...
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Gerry runs a clothing store in London. He recently purchased 1200 dress shirts that had manufacturer's list price of %55 per shirt. On each shirt there was a trade discount of 20% 10% and 5% from the manufacturer. Gerry's store has operating expenses that are 20% of the selling price and rate of markup is 50% on selling price. a. What was the cost per shirt to the store? b. What was the total amount of discount received on the purchase of the 1200 shirts from the manufacturer? c. What was the equivalent discount rate of the 20% 10% and 5% trade discounts? d. He sold 400 shirts at the regular selling price e. What was the total revenue from the 400 shirts sold?

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