Question

An analysis of the competition suggests the average retail selling price of an electronic game is $89. The owner of a computer accessories store has a chance to purchase 5 dozen of these games at a delivered cost of $55 per unit. Her normal margin on electronic games is 35%. Should she make the purchase? Why? Why not?

Answer 1

Answer:

Yes, she should buy

Explanation:

The cost price of the electronic games is $55 per unit.

The selling price is $89 per unit.

The margin is dollar = selling price - cost price

=$89- $55

=$34

As a percentage, the margin will be

=34/55 x 100

=61.82%

If her normal margin is 35%, then the offer is good for her.