1. **Problem statement:** Calculate markup, selling price, markdown price, profit/loss, breakeven quantity, and target sales quantity for oranges bought at 4.00 per kg with given expenses and profit margins. 2. **Formulas and rules:** - Operating expenses = 18% of cost price - Desired profit margin = 22% of cost price - Total markup = operating expenses + profit margin - Selling price = cost price + total markup - Markdown = 12% of selling price - Sale price after markdown = selling price - markdown - Profit or loss = sale price after markdown - cost price - operating expenses - Breakeven quantity = fixed costs / (sale price after markdown - variable cost per kg) - Target sales quantity = (fixed costs + target profit) / (sale price after markdown - variable cost per kg) 3. **Calculations:** **a) Total markup amount per kg:** Operating expenses = $0.18 \times 4.00 = 0.72$ Profit margin = $0.22 \times 4.00 = 0.88$ Total markup = $0.72 + 0.88 = 1.60$ **b) Selling price per kg including markup:** Selling price = $4.00 + 1.60 = 5.60$ **2a) Sale price after 12% markdown:** Markdown amount = $0.12 \times 5.60 = 0.672$ Sale price after markdown = $5.60 - 0.672 = 4.928$ **2b) Profit or loss at markdown price:** Total cost price including expenses = $4.00 + 0.72 = 4.72$ Profit/Loss = $4.928 - 4.72 = 0.208$ Since this is positive, the store makes a profit of $0.208$ per kg. **3a) Breakeven quantity:** Fixed costs = 720 Variable cost per kg = sale price after markdown = 4.928 Contribution margin per kg = sale price after markdown - variable cost per kg = $4.928 - 4.928 = 0$ Since variable cost equals sale price, contribution margin is zero, so breakeven quantity is infinite or undefined. **Note:** Variable cost per kg should be cost price plus operating expenses = $4.00 + 0.72 = 4.72$ Contribution margin = $4.928 - 4.72 = 0.208$ Breakeven quantity = $720 / 0.208 \approx 3461.54$ kg **3b) Quantity to meet target profit of 350:** Target sales quantity = $(720 + 350) / 0.208 = 1070 / 0.208 \approx 5144.23$ kg **Final answers:** - Total markup amount per kg = 1.60 - Selling price per kg = 5.60 - Sale price after markdown = 4.928 - Profit per kg at markdown = 0.208 - Breakeven quantity = 3462 kg (rounded) - Quantity for target profit = 5144 kg (rounded)