Rolf's Golf store sells golf balls for $32 per dozen. The store's overhead expenses are 27% of cost and the owners require a profit of 22% of cost.

a. How much does Rolf's Golf store buy the golf balls for? $ per dozen Round to the nearest cent

b. What is the price needed to cover all the costs and expenses? $ Round to the nearest cent
c. What is the highest rate of markdown at which the store will still break even? % Round to two decimal places

d. What markdown rate would price the golf balls at cost? % Round to two decimal places

Answer:

(A) Sale price of the Balls $32

Store overhead expenses are 27% of Cost

Profit required by owner 22% of Cost

Totat cost of balls will incresed by 49% of cost

if cost of Balls  $100 then sale price will be $149

Cost of Balls will be = 32/149*100 = $21.48

(B) Cost of Balls i $21.48

Overhead Expsnse is 27% of Cost = $5.80

Then price to cover Cost & overhead Expenses =21.48+5.80 = $27.28

(C) Break even price is at wich cost & overhead expenses cover is $27.28

Hight Markdown will be $32.00-27.28 =$4.72

Then Hight markdown will be = 4.72/32x100 =14.75%

(D) Cost of Balls is $21.48

hightest markdown at cost will be =$32.00-$21.48 =$10.52

At cost Markdown will be = 10.52/32x100= 32.87%