Let's break this down step by step, starting with problem 6 from the image:

You are asked to calculate the Regular Selling Price and Sale Price for each item in the table. The regular selling price is determined by the Markup Rate Based on Selling Price.

Here's the formula to calculate the Regular Selling Price:

$\text{Regular Selling Price} = \frac{\text{Case Cost}}{1 - \text{Markup Rate}}$

Then, for the Sale Price, you need to mark down the regular selling price by 25%. This can be calculated as:

$\text{Sale Price} = \text{Regular Selling Price} \times (1 - 0.25)$

Let's compute the Regular Selling Price and Sale Price for each item:

1. Butter-top dinner rolls

• Case Cost = $9.48
• Markup Rate = 25% = 0.25

$\text{Regular Selling Price} = \frac{9.48}{1 - 0.25} = \frac{9.48}{0.75} = 12.64$ $\text{Sale Price} = 12.64 \times 0.75 = 9.48$

2. Crescent dinner rolls

• Case Cost = $14.88
• Markup Rate = 29% = 0.29

$\text{Regular Selling Price} = \frac{14.88}{1 - 0.29} = \frac{14.88}{0.71} = 20.96$ $\text{Sale Price} = 20.96 \times 0.75 = 15.72$

3. Banana bread

• Case Cost = $23.52
• Markup Rate = 30% = 0.30

$\text{Regular Selling Price} = \frac{23.52}{1 - 0.30} = \frac{23.52}{0.70} = 33.60$ $\text{Sale Price} = 33.60 \times 0.75 = 25.20$

4. Apricot nut bread

• Case Cost = $26.82
• Markup Rate = 29% = 0.29

$\text{Regular Selling Price} = \frac{26.82}{1 - 0.29} = \frac{26.82}{0.71} = 37.77$ $\text{Sale Price} = 37.77 \times 0.75 = 28.33$

5. Cranberry nut muffins

• Case Cost = $21.12
• Markup Rate = 30% = 0.30

$\text{Regular Selling Price} = \frac{21.12}{1 - 0.30} = \frac{21.12}{0.70} = 30.17$ $\text{Sale Price} = 30.17 \times 0.75 = 22.63$

Final Answers for Question 6:

Now, let's look at Question 7:

You are given that the item is on sale for $11.98 after a 60% markdown. You need to find:

a. The Regular Selling Price

The formula to calculate the regular price is:

$\text{Regular Price} = \frac{\text{Sale Price}}{1 - \text{Markdown Rate}} = \frac{11.98}{1 - 0.60} = \frac{11.98}{0.40} = 29.95$

b. The Markdown

The markdown is:

$\text{Markdown} = \text{Regular Price} \times \text{Markdown Rate} = 29.95 \times 0.60 = 17.97$

Final Answers for Question 7:

• Regular Selling Price = $29.95
• Markdown = $17.97

Would you like more details or have any questions?

Here are five related questions to explore:

1. What is the significance of the markup rate in pricing?
2. How does markdown influence profit margins in retail?
3. How could a store determine the optimal discount rate for a promotion?
4. If the markdown rate were increased to 70%, how would that affect the sale price in Question 7?
5. What are other common strategies retailers use besides markdowns to attract customers?

Tip: When working with percentages, always convert them to decimals (e.g., 25% becomes 0.25) for accurate calculations.