A Clothing Store Sells Fancy Hats at a Gross Margin

question 10

Essay

A clothing store sells fancy hats at a gross margin of $3.50 each and ordinary hats at a gross margin of $5.00 each. During July, 110 hats were sold for a total gross margin of $460.00. How many fancy hats were sold?

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Definitions:

Gut Feelings

Intuitive judgments and responses that one cannot articulately rationalize, often based on experience.

Intuition

The capacity to grasp concepts intuitively, without relying on deliberate thought.

Rapidly Formed

Quickly developed or put together, often with little preparation or forethought.

Representativeness Heuristic

A cognitive shortcut that involves making decisions based on how closely new information resembles existing stereotypes or prototypes.