Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $140. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage. Required: 1. What selling price does the manager want? Selling price $ 250 2. What selling price has Kim calculated? Selling price $ 224 3. If there are 40 running shoes, how much will the store lose in sales if the price is not corrected?
Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $140. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage. Required: 1. What selling price does the manager want? Selling price $ 250 2. What selling price has Kim calculated? Selling price $ 224 3. If there are 40 running shoes, how much will the store lose in sales if the price is not corrected?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $140. The
manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup
percentage.
Required:
1. What selling price does the manager want?
Selling price
$ 250
2. What selling price has Kim calculated?
Selling price
$ 224
3. If there are 40 running shoes, how much will the store lose in sales if the price is not corrected?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6305d61-c87e-4ae4-8ab9-984392986b14%2F39c8db1f-126f-45e5-b069-49d7c3255739%2Fvdoqk8a_processed.png&w=3840&q=75)
Transcribed Image Text:Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $140. The
manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup
percentage.
Required:
1. What selling price does the manager want?
Selling price
$ 250
2. What selling price has Kim calculated?
Selling price
$ 224
3. If there are 40 running shoes, how much will the store lose in sales if the price is not corrected?
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