# Thread: Comprehensive applications ( markdown .. . i think )

1. ## Comprehensive applications ( markdown .. . i think )

Sonic Boom obtained a stereo system for $2400 less 30% and 15%. The store’s pricing is based on overhead expenses of 40% of cost. The “regular price” of the stereo system is set so that, if it is sold in a “20% off” sale, the store’s operating profit will be 25% of cost. a) what is the “regular price” b) In a midnight Madness Special, the system was sold at a 1/3 off special price. What was the profit or loss at the special price? 2400(1- 0.30)(1- 0.15) = 1428 S = S ( reduced ) + D S = 1428 + 0.20s + 0.25s S – 0.45s = 1428 55s = 1428 S = 2596.36 WRONG Correct answer for a 2945.25 where did i go wrong ? 2. Hello, Cost price;$\displaystyle 2400\cdot 0.7 \cdot 0.85=\$1428$
The overhead expense is 40% of this;
$\displaystyle =.4*1428=\$571.2$Operating profit is equal to 25% of cost, which is$\displaystyle 0.25*1428=\$357$
So if it were to be sold at a "20% off" sale, the sale price would be equal to the cost, plus the inbuilt overhead expense, plus the profit;
$\displaystyle \$1428+\$571.2+\$357=\$2356.2$
So the regular price is $\displaystyle \frac{\$2356.2}{0.8}=\$2945.25$

Hope that helps..