Final answer:
To find the maximum rate of markdown the store can offer and still break even for the backyard above-ground pool kit, we can set up an equation based on the selling price, overhead expenses, and operating profit. Solving this equation will give us the regular selling price and the maximum rate of markdown can be determined.
Step-by-step explanation:
To find the maximum rate of markdown the store can offer and still break even, we need to calculate the total cost and profit at different markdown rates.
Let's assume the regular selling price of the backyard above-ground pool kit is $x. The store pays $360 less 25% of $x, which can be expressed as $(x - 0.25x - 360), or $(0.75x - 360).
Given that the overhead expenses are 1632% of the regular selling price, the overhead expenses can be calculated as 0.1632x.
The operating profit is 15% of the selling price, so it can be expressed as 0.15x.
The total cost of selling the pool kit is the sum of the cost of the kit itself, the overhead expenses, and the operating profit.
To break even, the total cost needs to equal the selling price. Therefore, we can set up the equation: 0.75x - 360 + 0.1632x + 0.15x = x.
Solving this equation will give us the regular selling price, and the maximum rate of markdown the store can offer and still break even can be calculated accordingly.