Question

Using a markup of 35% of cost, a store priced a book at $8.91. Overhead expense is 25% of cost. Store put book on sale for 5% off regular price. What was operating profit or loss during sale?

Answer 1

operating profit = $0.445

Step-by-step explanation:

given data

markup = 35% of cost

book price = $8.91

Overhead expense = 25% of cost

sale = 5% off regular price

solution

first we get here cost of the book (C) that is express as

Selling price = cost of book + markup

$8.91 = C + $0.35 C

cost of book = $6.6

and we know 5% discount at the marked price and 25 % overhead expenses so here operating profit will be

operating profit = book price × ( markup % - Overhead expense% - discount % )

operating profit = $8.91 × (35% - 25% - 5% )

operating profit = $0.445