A Bedroom Set Regularly Sells for $958

question 230

Multiple Choice

A bedroom set regularly sells for $958. If it is on sale for $718.50, what is the percent of markdown?

• A) 22%
• B) 27%
• C) 20%
• D) 25%
• E) 29%

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Definitions:

Explicit Costs

Direct, out-of-pocket payments made for operations or production, such as wages, rent, and materials.

Average Fixed Cost

The constant expenses associated with production (expenses unaffected by output levels) divided by the volume of production.

Total Fixed Cost

The sum of all costs that do not change with the level of output or activity over a short period, such as rent, salaries, and equipment maintenance costs.

Average Total Cost

The total cost of production divided by the number of units produced.