Step 1: State the given in the question
THe following were given:
Step 2: State what is to be found
We are to find the absolute loss
Step 3: Calculate the selling price
Please note that the selling price is the marked down price
The marked down price would be
The selling price is the marked down price which is $189.74
Step 4: Calcualte the operating expenses
Please note that the cost price is amount paid. Therefore, the operating expenses would be as calculated below:
Hence, the operating expenses is $58.38
Step 5: Calculate the total cost price
The total cost price is the addition of the cost price and the operating expenses. This is as calculated below:
Hence, the total cost price is $266.88
Step 6: Calculate the absolute loss
The absolute loss is the difference between the total cost price and the marked down price (or the actual selling price). This is as calculated below:
Hence, the absolute loss is $77.14