A Clothing Store Sells Fancy Hats at a Gross Margin

question 10

Essay

A clothing store sells fancy hats at a gross margin of $3.50 each and ordinary hats at a gross margin of $5.00 each. During July, 110 hats were sold for a total gross margin of $460.00. How many fancy hats were sold?

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Definitions:

Retained Earnings

The portion of a company's profits that is held back and not distributed to shareholders, reinvested in the business.

Net Income

The net income a company earns once all costs and taxes are subtracted from its total revenues.

Dividend

A portion of a company's earnings distributed to its shareholders, typically paid out in cash or additional shares of stock.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company, reducing the amount of stock on the open market.