Hello everyone,

I have tried to solve the questions below, but I'm not sure if they are correct. Please help. Thank you.
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1/ The Scarlet Letter bookstore has $85 000 of sales, variables costs of$36 550, and fixed costs of $27 360. What would it sales have to be to break even? Variable cost/total revenue 36550/85000 = 0.43 1.00X = 27360 + 0.43X X=48000 2/ Rover's Friends provides dog washing services. For each dog, supplies cost$3 and wages are $5. To provide this service, a special room and equipment are needed, at a cost of$300 per month. Rover's Friends maintains an average of $30 dogs washed each month. What must Rover's Friends charge as a price for the dog washing service to break even? Variable cost = 3 + 5 = 8, fixed cost = 300. (SP*30) = 30 + (8*30) 30SP=540 SP=18 3/ The Peel Trading Company received an invoice dated September 20 for$16000 less 25% and 20%, terms 5/10, 2/30, n/60. Peel made a payment on September 30 to reduce the debt to $5000 and a payment on October 20 to reduce the debt by$3000. (a) What amount must Peel remit to pay the balance of the debt at the end of the credit period? (b) What is the total amount paid by Peel?

(a) 16000(1-0.25)(1-0.20) = 9600

(b) 9600-5000 = 4600
4600(1-0.05) = 4370 paid
9600-4600=5000 balance

5000-3000= 2000 balance
3000(1-0.02)= 2940 paid
The total amount paid by Peel was 4370 + 2940 = 7310

4/ Using a markup of 35% of cost, a store priced a book at $8.91. (a) What was the cost of the book? (b) What is the markup as a percent of selling price? (a) Selling price = cost + markup, cost = C 8.91 = C + 0.35C 8.91 = 1.35C C=6.6 (b) 6.6(0.35) = 2.31 2.31/8.91 = 25.9% 2. ## Re: Please Help with Cost, Volumn, Profits and Trade Discount Originally Posted by isuck Hello everyone, I have tried to solve the questions below, but I'm not sure if they are correct. Please help. Thank you. -------------------------------------------------------------------- 1/ The Scarlet Letter bookstore has \$85 000 of sales, variables costs of \$36 550, and fixed costs of \$27 360. What would it sales have to be to break even?

Variable cost/total revenue 36550/85000 = 0.43
1.00X = 27360 + 0.43X
X=48000

2/ Rover's Friends provides dog washing services. For each dog, supplies cost \$3 and wages are \$5. To provide this service, a special room and equipment are needed, at a cost of \$300 per month. Rover's Friends maintains an average of 30 dogs washed each month. What must Rover's Friends charge as a price for the dog washing service to break even? Variable cost = 3 + 5 = 8, fixed cost = 300. (SP*30) = 30 + (8*30) 30SP=540 SP=18 3/ The Peel Trading Company received an invoice dated September 20 for \$16000 less 25% and 20%, terms 5/10, 2/30, n/60. Peel made a payment on September 30 to reduce the debt to \$5000 and a payment on October 20 to reduce the debt by \$3000. (a) What amount must Peel remit to pay the balance of the debt at the end of the credit period? (b) What is the total amount paid by Peel?

(a) 16000(1-0.25)(1-0.20) = 9600

(b) 9600-5000 = 4600
4600(1-0.05) = 4370 paid
9600-4600=5000 balance

5000-3000= 2000 balance
3000(1-0.02)= 2940 paid
The total amount paid by Peel was 4370 + 2940 = 7310

4/ Using a markup of 35% of cost, a store priced a book at \$8.91. (a) What was the cost of the book? (b) What is the markup as a percent of selling price? (a) Selling price = cost + markup, cost = C 8.91 = C + 0.35C 8.91 = 1.35C C=6.6 (b) 6.6(0.35) = 2.31 2.31/8.91 = 25.9% reposted to escape dollar signs 3. ## Re: Please Help with Cost, Volumn, Profits and Trade Discount Thank you so much, Romsek. 4. ## Re: Please Help with Cost, Volumn, Profits and Trade Discount 1 and 2 are correct. I may have time to look at the rest later. 5. ## Re: Please Help with Cost, Volumn, Profits and Trade Discount Thank you Romsek. Hopefully, the other two are also right but I doubt it. 6. ## Re: Please Help with Cost, Volumn, Profits and Trade Discount 4 looks correct. I don't understand question 3. 7. ## Re: Please Help with Cost, Volumn, Profits and Trade Discount The question three is very confusing, especially the part a. Hopefully someone know the correct answer . 8. ## Re: Please Help with Cost, Volumn, Profits and Trade Discount There's NO correct answer, only guesses. Depends on rules applied to partial payments. #### Search tags for this page ### rover's friends provides dog washing services. for each dog, supplies cost$3 and wages are $5. to provide this service, a special room and equipment are needed, at a cost of$300 per month. rover's friends maintains an average of \$30 dogs washed each mon

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