Question

building off your work from the previous quiz question, what would the sales price of job 1187 be if the company marked up jobs at 30 bove cost? go to 2 decimal places and don't use dollar sign ($)

Answer 1

The sales price of job 1187 would be $91.00.

Step-by-step explanation:

To determine the sales price with a 30% markup above cost, we first need to calculate the cost of job 1187. Let's denote the cost as C. The formula for calculating the sales price (SP) with a markup is SP = C + (C * Markup Percentage). In this case, the markup is 30%, so the formula becomes SP = C + 0.30C.

Now, the cost can be expressed as the sum of the cost of goods sold (COGS) and the desired profit (P). Therefore, C = COGS + P. Substituting this into the sales price formula, we get SP = (COGS + P) + 0.30(COGS + P).

To simplify, distribute the 0.30 to both COGS and P: SP = COGS + P + 0.30COGS + 0.30P. Combine like terms: SP = 1.30COGS + 1.30P.

Now, substitute the actual values from job 1187: SP = 1.30 * COGS1187 + 1.30 * Profit1187.

Since we are given that the company marked up jobs at 30% above cost, Profit1187 is the same as COGS1187 * 0.30. Substitute this back into the equation: SP = 1.30 * COGS1187 + 1.30 * (0.30 * COGS1187).

Now, simplify the equation and solve for COGS1187: SP = 1.69 * COGS1187. Given the SP is $91.00, we can find COGS1187 by dividing $91.00 by 1.69, yielding a cost of $53.85. Therefore, the sales price of job 1187 is $91.00.