Question

~PLEASE HELP ASAP OFFERING 20 POINTS PLEASE ANSWER ALL QUESTIONS~

Use these equations to help you with the problems
Cost = Selling Price - Markup
Markup = Selling Price - Cost
Net Profit = MArk up - Overhead
Net Profit = Selling Price - Cost - Overhead
Overhead = Selling Price X Overhead Percent

Question 1) Johnson Canniver has a repair shop. He bought a used lawn mower for $35.00 from a customer. He spent $39.17 on parts to repair the mower. He also painted and polished the mower at a cost of $36.43. He was able to sell the refurbished lawn mower for $155.00. If it took 4.5 hours to do all the work, how much did he earn per hour to the nearest cent? (Hint: Find the markup on the lawn mower first.)

Question 2) Nakesha Sporting Goods operates on a 45% overhead based on the selling price. This results in an overhead of $65.34 on the newest version of an air hockey game set. If the air hockey game set costs Nakesha Sports $49.32, find the net profit to the nearest cent. (Hint: Find the selling price from the overhead percent. Then subtract costs and overhead from the selling price.)

Answer 1

1) Johnson's profit is

... net profit = selling price - costs = $155 - 35.00 - 39.17 - 36.43 = $44.40

His net earnings per hour are then

... earnings/hours = $44.40 / (4.5 h) = $9.87/h

2) net profit = selling price - overhead - cost

... net profit = selling price - 0.45 × selling price - cost . . . . substitute for overhead

... net profit = 0.55 × selling price - cost

Given that overhead = 0.45 × selling price, we can find selling price by dividing by 0.45:

... selling price = overhead/0.45

Using this in the profit equation, we have

... net profit = 0.55×(overhead/0.45) - cost

... = (0.55/0.45) × $65.34 - 49.32 . . . . . . substitute given numbers

... net profit = $30.54