Question

A store purchased an item for $90 and planned to sell it for $162.00 so that their profitwould be 40% of their cost. If they were unable to sell it for this amount, what minimumselling price would allow them to break even?$

Answer 1

Given that a store purchased an item for $90.

They want a profit of 40% of their costs.

So, 40% of their costs = 40% of $90

= 40/100 * 90

= $36

Let y be the minimum selling price

So, from the question we c an say thst:

y = $(90 + 36)

y = $126

Therefore the minimum selling price of $126 would give the profit of 40% of their cost.