Final answer:
The operating loss can be calculated by adding the cost and the operating expense and then subtracting the selling price. The calculated operating loss in this scenario is $23.75. However, this value does not match any of the provided options, suggesting a possible error in the question or options.
Step-by-step explanation:
The question involves calculating the operating loss of a product whose selling price has been reduced to $70, with an initial cost of $75, and an operating expense that is 25% of the cost. To find the operating loss:
- First, we calculate the operating expense: 25% of $75 is $18.75.
- Then, we add the cost ($75) to the operating expense ($18.75) to get the total cost: $75 + $18.75 = $93.75.
- Finally, we subtract the selling price ($70) from the total cost ($93.75) to determine the operating loss: $93.75 - $70 = $23.75.
However, in the options given (A, B, C, D), there is no option that matches this calculated operating loss. It seems there might be an error in the options provided, or we may need to reassess the original data provided in the question. If by 'operating loss' the question only refers to the loss incurred due to the operating expense, then we would only consider the operating expense ($18.75) and the reduced price ($70). If the product sells for more than the operating expense, there would be no operating loss (which is not the case here).