Question

a store bought a vacuum cleaner for $120. the overhead is 5% of the cost. the store wants to make a profit of 10% over the cost plus overhead. find the selling price of the cleaner.

Answer 1

The selling price of the cleaner is:

• $138.6

Explanation:

First, we have the base of the value that is $120, now we know that the overhead is 5%, so we must calculate this value in dollars, the 5% of $120 is:

• $120 * 5% = $6

This value you must add to the base ($120), so the cost with the overhead is $126. How the store wants to make a profit of 10%, you must calculate this 10% of the total cost obtained ($126):

• $126 * 10% = $12.6

And you must add this value to obtain the final price in the store:

• $126 + $12.6 = $138.6