Question

A hardware store buys outdoor lights for $2.00 per dozen less 25%,16%. The store's overhead is 26% of cost and the required profit is 30% of cost. For how much per dozen should the lights be sold? The selling price should be $ per dozen. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

Step-by-step explanation

To find the solution of this answer in most efficient way here are the following steps you can follow:

Step 1: Start calculating the cost of per dozen outdoor lights and remember to find it after adjusting the discounts.

Step 2: Addition of the overhead cost has to be done to the cost that was discounted.

Step 3: Now, you are required to add the profit to get the selling price of per dozen.

Detailed steps showing calculations are mentioned below:

Step 1: Since, the store dealing in hardware purchases the outdoor lights for $2 per dozen minus the 25%, 16 we will start by applying the 25% discount first.

Cost after discount = $2 - (25% of 2$) = $2-$0.50 = $1.50 per dozen

Now, the 16% discount will be applied to the previously discounted number

Cost after discount = $1.50- $0.24 = $1.26 per dozen

Step 2: Addition of the overhead charges

Overhead Cost = 26% of the discounted cost

Overhead Cost = 26% of $1.26 = 0.26 * $1.26 ≈ $0.3276 per dozen

Total Cost including discounted cost and overhead cost = $1.26 + $0.3276 = $1.5876 per dozen

Step 3: Now, add the required profit to get the selling price per dozen:

Profit = 30% ( total cost)

Profit = 30% of $1.5876 = 0.30 * $1.5876 ≈ $0.4763 per dozen

Sale Price Per Dozen = Total Cost + ProfitSelling Price Per Dozen = $1.5876 + $0.4763 = $2.0639 per dozen

Therefore, the lights should be sold for approximately $2.06 per dozen to cover all costs and achieve the desired profit margin. However, after rounding up the numerical value the selling price per dozen should be $2.06.