"Paul's Guitars Always Sells for Less" Is a Music Store

question 116

Multiple Choice

"Paul's Guitars always sells for Less" is a music store in Acoostic, Alberta. Their overhead expenses are 15% of cost. They recently sold a guitar for $675 and the mark-up on that guitar was equal to 22% of the selling price. How much net profit did they realize on that sale?

• A) $47.25
• B) $69.53
• C) $89.55
• D) $148.5
• E) $215

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Definitions:

Production Rate

The speed at which goods are manufactured or produced in a given period of time.

Constant Value Dollars

An accounting method that adjusts for inflation to preserve the purchasing power of the currency over time.

Annual Rate Change

The year-over-year percentage change in a particular variable, such as revenue, expenses, or prices.

Unit Cost

The total expense incurred in producing, storing, and selling one unit of a product, calculated by dividing the total cost by the number of units produced.