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A news stand sells local fashion magazines. The cost to purchase the magazines is the list price of $8.00 less a discount of 33%. Fixed costs total $203 per week. The usual price for the magazines is the list price. Answer each of the following independent questions. ​(a) If the desired profit is ​$150​, how many magazines must they sell each​ week?

1 Answer

4 votes

Answer:

Explanation:

To find the number of magazines the newsstand must sell each week to achieve a desired profit of $150, we can use the following formula:

Profit

=

(

Selling Price

Cost Price

)

×

Number of Magazines Sold

Fixed Costs

Profit=(Selling Price−Cost Price)×Number of Magazines Sold−Fixed Costs

Given:

List price (usual selling price) = $8.00

Discount = 33% of $8.00

Fixed costs = $203 per week

Desired profit = $150

The cost price is the list price less the discount. So,

Cost Price

=

$

8.00

(

0.33

×

$

8.00

)

Cost Price=$8.00−(0.33×$8.00)

Now, let's calculate the profit per magazine:

Profit per Magazine

=

(

Selling Price

Cost Price

)

Profit per Magazine=(Selling Price−Cost Price)

Finally, we can use the formula for profit to find the number of magazines the newsstand must sell:

Number of Magazines Sold

=

Profit

+

Fixed Costs

Profit per Magazine

Number of Magazines Sold=

Profit per Magazine

Profit+Fixed Costs

Let's plug in the values and calculate:

Cost Price

=

$

8.00

(

0.33

×

$

8.00

)

Cost Price=$8.00−(0.33×$8.00)

Profit per Magazine

=

(

$

8.00

Cost Price

)

Profit per Magazine=($8.00−Cost Price)

Number of Magazines Sold

=

$

150

+

$

203

Profit per Magazine

Number of Magazines Sold=

Profit per Magazine

$150+$203

By solving these equations, you'll find the number of magazines the newsstand must sell each week to achieve a profit of $150.

User Fralle
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