Question

Pep Boys Automotive paid $208.50 for a pickup truck bedliner. The original selling price was $291.90, but this was marked down 35%. If operating expenses are 28% of the cost, find the operating loss

Answer 1

The cost price is C.P.=$208.50

The original selling price is $291.90

Operating expenses are 28% of the cost.

Thus,

28% of cost=28% of 208.50=$58.38

Thus the break event point is

Break event point=208.50+58.38=$266.88

The original selling price is marked 35% down.

Thus the reduced price is

Reduced price=(100%-35%)x291.90=65%x291.90=$189.735

Thus the operating loss is given by

Operating loss=Break event point-Reduced price=266.88-189.735=$77.15

Thus the operating loss is $77.15