25.9k views
2 votes
Business math problem, whats the formula for this, how do I do this?

Business math problem, whats the formula for this, how do I do this?-example-1
User Bounav
by
6.9k points

1 Answer

5 votes

Answer: C) 45 dollars

========================================================

Step-by-step explanation:

x = sticker price, which is some number larger than 9 (otherwise the store loses money)

x-9 = profit made per speaker

To get the gross margin percentage, we divide the profit over the sales (aka revenue). So we'll divide (x-9) over x

The expression (x-9)/x represents the gross margin in decimal form. Set this equal to 0.80 and solve for x

-----------------

(x-9)/x = 0.80

x-9 = 0.80x

x-0.80x = 9

0.20x = 9

x = 9/0.20

x = 45

The sticker price is $45

-------------------

If the sticker price is $45 per speaker, then the store owner gets 45-9 = 36 dollars in profit per speaker sold. The gross margin would be (profit)/(sales) = 36/45 = 0.80 = 80%

In other words, 80% of the revenue is profit (the remaining 20% is costs or expenses).

User Jfpoilpret
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories