Question

A clothing distributor purchases a machine for $182,000 less discounts of 12% and 5%. the distributor then sells the machine to a client at a price, which include: 33% profit on cost and overhead expenses of 19% on cost.. calculate the break-even price. $0.00 round to the nearest cent

Answer 1

To calculate the break-even price, subtract the discounts from the purchase price, then add the desired profit and overhead expenses to get the break-even price.

Step-by-step explanation:

To calculate the break-even price, we need to calculate the total cost and then add the desired profit and overhead expenses.

1. Calculate the total cost by subtracting the discounts from the purchase price: $182,000 - ($182,000 * 0.12) - ($182,000 * 0.05) = $145,040
2. Calculate the desired profit on cost by multiplying the total cost by 33%: $145,040 * 0.33 = $47,939.20
3. Calculate the overhead expenses on cost by multiplying the total cost by 19%: $145,040 * 0.19 = $27,558.40
4. Add the total cost, desired profit, and overhead expenses together to get the break-even price: $145,040 + $47,939.20 + $27,558.40 = $220,537.60

The break-even price is $220,537.60.