A single store shoe retailer typically sells 200 pairs of shoes per week at an...
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Accounting
A single store shoe retailer typically sells 200 pairs of shoes per week at an average price of $25 per pair. The average cost is $10 per pair, so the retailer earns a gross margin of $3000 per week. If the retailer drop the average price by 10%, to $22.50 per pair, how many shoes must the retailer sell to still achieve the same gross margin of $3000 per week. What % increase is this over the current 200 pairs sold per week?
3. Use the following example: A retailer accepts a $50 credit card purchase (a $50 transaction). The bank issuing the card charges a 1.75% of transaction interchange fee plus a flat transaction fee of $0.10. The credit card company charges a 0.13% of transaction fee. The retailer's bank receives a processing fee of 0.25% of transaction plus a $0.10 flat transaction fee. How much of the $50 purchase will the retailer keep?
4. If a manufacturer sells units for $300 each and has a fixed cost of $20,000 per month a variable cost of $200 per unit, how many units must the manufacturer sell per month to break even?
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