Mountain equipment co op wants to price a new backpack. the backpack can be purchased for at list price for$ 84.95 less a trade discount of 20% and a quantity discount of 15%. MEC estimate expenses to 16 % of ghost and it must have maintain a markup on selling price of 32%. 1. what is the cost of backpack? 2. what is the markup amount? 3. what is the regular unit selling price for the backpack? 4. what the profit will mountain equipment co op realize? 5. what happens to the profits if it sells the backpack at the MSRP instead?

Mountain equipment co op wants to price a new backpack. the backpack can be purchased for at list price for$ 84.95 less a trade discount of 20% and a quantity discount of 15%. MEC estimate expenses to 16 % of ghost and it must have maintain a markup on selling price of 32%. 1. what is the cost of backpack? 2. what is the markup amount? 3. what is the regular unit selling price for the backpack? 4. what the profit will mountain equipment co op realize? 5. what happens to the profits if it sells the backpack at the MSRP instead?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...

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