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Problem #1 You are to construct an operating statement from the following data; then compute the gross-margin

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Problem #1 You are to construct an operating statement from the following data; then compute the gross-margin. Purchases billed (at cost) $ 15,000 Net sales 30,000 Rent 1,500 Salaries 6,000 Purchase discounts 300 Returns 100 Opening inventory (at cost) 10,000 Advertising 600 Freight-in 500 Other expenses 2,000 Closing inventory (at cost) 7,500 1?An article has a retail value of $10 and a cost of $7. Find the markup in dollars What is the markup percent? What is the markup percent based on cost? 2?Competition in a line of sporting goods limits the retail selling price on a certain item to $25. If the store owner feels a markup of 35 percent is needed to cover expenses and return a reasonable profit, what is the most the owner can pay for this item? 3?Determine the market potential for a product that has 50 thousand prospective buyers who purchase an average of 3 units per year and price averages $25. What is the market potential in $? How many units must a company sell if it desires a 10% share of the market? 4?Suppose we looked at our retailer’s balance sheet for the period of the profit and loss statement and found that it showed total assets of $500,000. While the profit and loss statement showed a net profit of $40,000. What is the Return On Investment %?