A Retailer Bought 10 000 Units of Cell Phone Cases

question 82

Essay

A retailer bought 10 000 units of cell phone cases for $55 000.00. On delivery, it was realized that not all the cases were of the same quality. Hence they were classified as high quality, average quality and poor quality. The 4200 high quality cases were sold at a markup of 120% of cost, the 2800 average quality cases were sold at a markup of 80% of the cost, and the remaining were sold at cost price.
a) What is the unit selling price at which each of the three classifications were sold?
b) If overhead is 18% of the cost, what is the amount of profit realized on the purchase?

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Definitions:

Opponent-Process Theory

A theory of color perception that assumes that the visual system treats pairs of colors as opposing or antagonistic.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors via intermediate bipolar cells and transmit it to the brain.

Visual Cortex

The region of the cerebral cortex that processes visual information, located in the occipital lobe of the brain.

Feature Detectors

Cells in the visual cortex that are sensitive to specific features of the environment.