Question

Aling Ana would like to sell little trinkets she purchased from Divisoria for PHP 12 each. If the operating cost is set at 25% of the cost and she would like to have a 15% profit on the cost of each item. a. Determine the mark-up price for each trinket. b. Help Aling Ana determine the selling price for each trinket.

Answer 1

To determine the mark-up price for each trinket, add the operating cost and the desired profit to the cost of each item. The mark-up price for each trinket is the cost + operating cost + desired profit. The selling price for each trinket is the mark-up price.

Step-by-step explanation:

To determine the mark-up price for each trinket, we need to add the operating cost and the desired profit to the cost of each item.

Let's assume that the cost of each trinket is PHP 12.

a. The operating cost is 25% of the cost, which is 0.25 * 12 = PHP 3.

The desired profit is 15% of the cost, which is 0.15 * 12 = PHP 1.80.

The mark-up price for each trinket is the cost (PHP 12) + operating cost (PHP 3) + desired profit (PHP 1.80), which is PHP 12 + 3 + 1.80 = PHP 16.80.

b. The selling price for each trinket is the mark-up price (PHP 16.80).