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A clothing merchant purchases a shipment of clothes for $36,000.00 with discounts of 10% and 6%. he sells it to a customer at a price which includes 21% profit on cost and overhead expenses of 24% on cost. a. how much did it cost him to purchase the container of clothes?

User Massysett
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Final answer:

The merchant's final cost after applying the discounts of 10% and 6% on the initial shipment cost of $36,000 is $30,456. They sold the clothes to a customer at a price of $44,161.20, which includes a 21% profit on the cost and 24% overhead expenses.

Step-by-step explanation:

The question asks us to calculate the cost to the merchant for the purchase of a shipment of clothes after applying two discounts, and then to find the selling price to the customer including a profit and overhead expenses based on this cost.

Step 1: Calculate the Net Cost

Original Cost of shipment = $36,000
First discount of 10% = 0.10 × $36,000 = $3,600
Subtracting first discount: $36,000 - $3,600 = $32,400
Second discount of 6% = 0.06 × $32,400 = $1,944
Subtracting second discount: $32,400 - $1,944 = $30,456

Step 2: Calculate the Selling Price

Profit of 21% = 0.21 × $30,456 = $6,395.76
Overhead expenses of 24% = 0.24 × $30,456 = $7,309.44
Adding profit and overhead to the net cost: $30,456 + $6,395.76 + $7,309.44 = $44,161.20

Therefore, the merchant purchased the clothes at a cost of $30,456 and sold it to a customer for $44,161.20.

User Sushin Pv
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