A retailer buys T-shirts for $12.50. They are marked up to cover overhead of 40% of cost and a profit of 10% of cost. What is the rate of markdown if the T-shirts are sold at the break-even price?
A) $6 \frac{2}{3} \%$
B) 50.0%
C) $26 \frac{2}{3} \%$
D) 23.3%
E) $33 \frac{1}{3} \%$

Question

Quizplus · Accepted Answer

The correct answer is A because the rate of markdown is calculated as (Cost + Markup - Selling Price) / Cost. In this case, the cost is $12.50, the markup is 40% of cost ($5), and the selling price is the break-even price, which is equal to the cost. Therefore, the rate of markdown is ($12.50 + $5 - $12.50) / $12.50 = 0.0667, or 6.67%.

A Retailer Buys T-Shirts for $12 623%6 \frac{2}{3} \%632​% B) 500% C)

A Retailer Buys T-Shirts for $12 $6 \frac{2}{3} \%$ B) 500%
C)