Math
posted by Tha .
Bosley's Pet Foods buys dog kibbl for $19.50 per bag, less 40%. The store's overhead is 33 1/3% of the selling price, and the desired profit is 10% of the selling price.
(a) At what price per bag should the dog food be sold?
(b) At this price, what is the rate of markup on cost?
(c) What is the breakeven price?

Arithmetic is used to solve the problem although algebra can also be used.
Cost price = $19.50 19.50*0.40 = $11.70
The selling price includes
 33 1/3 % of overhead
 10 % of profit
So the fraction of cost in selling price
= 100%  33 1/3  10 = 56 2/3%
Therefore selling price
= cost / fraction of cost
= $11.70 / (56 2/3%)
= $11.70 / (170/300)
= $11.70 * 300/170
= $20.65
Check:
Profit (10%) = 20.65*0.1 = $2.07
Overhead (33 1/3%) = 20.65*(1/3)= 6.88
Cost price = 20.652.076.88=11.70
So the answer is correct. 
(b) the markup on cost is the profit divided by the cost price. It should be different from 33 1/3%.
(c) the break even price is the selling price less the profit, i.e. zero profit.
Respond to this Question
Similar Questions

algebra
Henry paid $.80 for each bag of peanuts. He sold all but 20 of them for $1.50 and made a profit of $54. How many bags did he buy? 
Business Finance
Sullivan's Handbags mark up their bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85. What is the most she could pay for the bag and still retain the 45% markup of … 
Business Finance
Sullivan's Handbags marks up their bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that would sell for her customers for $85. What is the most she would pay for the bag and still retain the 45% markup of the … 
business finance
Sullivan’s Handbags marks up their bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85. What is the most she could pay for the bag and still retain the 45% markup … 
business math
everweek a store buys 30 gallons of milk at a cost of $1.58 per gallon. The store owner anticipates a 15% spoilage rate.in order to achieve a 20% markup based on selling prive what is the selling price per gallon 
Manegerial accounting
calculate the net operating income , evergreen corp has provided the following data: sales per period 1000 units ,selling price $ 40 per unit , variable manufacturing cost 12 per unit, selling expenses $5,100 pls 5% of selling price … 
Math
500 pounds of apples were purchased at $0.35 per pound. The desired markup is 30% based on selling price, but 18% spoilage is expected. What should the selling price per pound be? 
math
A businessman bought two bags of maize at the same price per bag. he discovered that one bag was of high quality and the other of low quality. On the high quality bag he made a profit by selling at $ 1,040. Whereas on the low quality … 
Business Math GBM 200
300 pounds of oranges were purchased at $0.24 per pound. The desired markup is 50% based on selling price, but 21% spoilage is expected. What should the selling price per pound be? 
Advanced Functions
The number of bicycles, n, sold at one store in a week is a function of the price, p, in dollars. So n(p) for p > 80. The storeÃ¢â‚¬â„¢s cost, c, in dollars for each bike is a function of the number of bikes the store …