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The following formula was used to compute the 20% markup on selling price: Gross profit on selling price = Percentage markup on cost = .25 = 20% 100% + Percentage markup on cost 1 + .25 13. Inventory, January 1, 2008 $ 400,000 Purchases to February 10, 2008 $1,140,000 Freight-in to February 10, 2008 60,000 1,200,000 Merchandise available ... ................
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