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Question
Michael Soles-owner of Soles Shoe Store-recently discovered that shoe stores in his trading area have an average markup of 40 percent. Upon investigation, Michael found that his average markup is $15 on shoes that he sells for $45. This suggests that:A. Michael has higher-than-average costs.
B. Michael is pricing his products higher than his competitors.
C. Michael is taking a smaller average markup than his competitors.
D. Michael has a relatively high stockturn rate.
E. Michael's markups in dollar amounts are about the same as his competitors.
Answer
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