The Carpet Baggers, which carries various Persian carpets, is both advertising its product while trying to educate consumers about the competition's pricing scheme. Use the information in this advertisement to answer the following questions. Cost refers to what a store pays to buy a carpet from the manufacturer, which is the same as the wholesale cost. The retail price refers to the amount the customer has to pay. Assume that the wholesale cost is the same for products from both The Carpet Baggers and all its competitors.