After All Discounts, the Net Cost of a Product Was

question 253

Short Answer

After all discounts, the net cost of a product was $399.43. The regular retail price of the product was $495.29. Operating expenses associated with the product were $39.94. If the product was sold to actually realize a 5.40% mark-up, then determine the discounted retail price.

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Definitions:

Cash-Basis Expenses

Expenses recorded when cash is actually paid out, under the cash basis of accounting, as opposed to the accrual basis which recognizes expenses when they are incurred.

Warranty Expenses

Costs recognized by companies to cover repairs or replacements for customers as part of product warranty agreements.

Inventory Purchases

The buying of goods to be sold in the normal course of business operations.

Sustainable Income

Revenue that can be maintained for the foreseeable future without diminishing resources or opportunities.