Ski Market Sells Snowboards

question 38

Multiple Choice

Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is:

• A)$98.65
• B)$96.65
• C)$88.65
• D)$87.65
• E)None of these

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Definitions:

Corporate Profits

The surplus income of a corporation after all expenses, including taxes and operational costs, have been deducted from total revenues.

Net Earnings

The amount of profit that remains after all operating expenses, taxes, and interest have been deducted from total revenue.

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money, often reflecting the cost of borrowing or the reward for saving.

Continuous Future

Refers to actions or events that are expected to continue over a period of time in the future.