For Your Eyes Only Company Bought Plasma Screen TV Sets

question 153

Essay

For Your Eyes Only Company bought plasma screen TV sets for $11 585 less 4.5%, 3.2%. Overhead is 19% of regular selling price and required profit is 31% of regular selling price. The gas plasma TV sets were marked at a new regular selling price so that the store was able to advertise a discount of 10% while still maintaining its margin. To clear the inventory, the remaining TV sets were marked down 15%.
What operating profit or loss is realized at the clearance price?

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Definitions:

Monthly Salary

The amount of money an employee is paid each month for their job performance, not including bonuses or overtime pay.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been removed.

FICA Tax

The Federal Insurance Contributions Act (FICA) tax is a payroll tax in the United States that is required from both employers and employees to support Social Security and Medicare programs.

Federal Income Tax

A tax levied by the federal government on an individual's or corporation's annual income.