Hi! this is Greg and I need some help with my Math homework, I have already figure out some part but I need to know if I am on the right track. Thanks
17. A vendor reduces an item listed at $140 on July 1st by 20%, and then reduces it another 25% on September 1st. What is the sale price of the good after the last reduction?
Step 1 Calculate the reduced price on July 1
$140 x .20 = $28.00 markdown amount
$140 - $28.00 = $112 reduce price July 1
Step 2 Calculate the reduced price on Sept 1
$112 x .25 = $28 markdown amount
$112 - $28 = $84 reduced price Sept 1
19. A merchant buys a good for $275. Their store's operating expenses are 35% of cost. The selling price of the good is $549, but is marked down by 35%. The transaction resulted in a:
Mark price $549.00
Cost of Item - $275.00
Gross Profit $274.00
Operating Expense $96.25
Net Profit (loss) $177.75
20. A trader buys a good at a cost of $8.00 per unit. Operating expenses are 35% of the selling price and net profit is 15% of the selling price. What is the maximum dollar markdown allowed without incurring an operating loss on the sale of the good?
Calculate the selling price (marked price) using the markup equation
Cost + Markup = Selling Price
$8.00 + (.35S + .15S) = S
$8.00 + .50S = S
$8.00 = S - .50S
$ 8.00 = .50S
$ 16 = S
Step 1 Find the break even point
Cost + Operating expense = break even point
$8.00 + (16 x .35) = BEP
$8.00 + $5.60 = $ 13.60
Step 2 Find the maximum markdown amount allowed without an operating loss
Selling Price - Break even point = Maximum markdown
$ 16 - $13.60 = $ 2.40