Sonny Fujito Sells Machine Shop Equipment

question 16

Short Answer

Sonny Fujito sells machine shop equipment. One customer was interested in a 4-speed, metal-cutting, horizontal band saw, without motor. This particular band saw cost $2,464. If Sonny sold the saw for $4,004, what was the percent markup percent based on cost?

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Definitions:

Losses

Occurs when a company's expenses exceed its revenues during a specific period.

Competitive Price-Taker

A competitive price-taker is a firm or individual that has no control over market prices and must accept the prevailing market price as is.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Revenues

The income generated from normal business operations, calculated as the selling price of goods or services times the quantity sold.