An Item Regularly Priced at $89

question 165

Multiple Choice

An item regularly priced at $89.00 is marked down to the cost price for a clearance sale. If the item cost the retailer $40.05, what is the rate of markdown?

• A) 45%
• B) 49%
• C) 55%
• D) 22%
• E) 122%

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Definitions:

Unit Sales

The total quantity of units of a product sold in a specific period.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses like interest and taxes.

Traceable Fixed Expense

Costs that can be directly linked to a specific segment of a business without any ambiguity.

Price Increase

An upward adjustment in the selling price of goods or services, typically in response to inflation, increased costs, or improved value.