Hey can someone review my math and see if i did it correctly? The math question is: Choose one product from your business and determine the markup and gross profit for it. Assume that the retail price of the product is $85, the cost is $47, and the expenses are $13. Then using the same figures and product, compute a new sale price using the formula for markdowns, assuming a 15 percent discount. In each of these calculations you must show all of your work and properly label each number amount by its correct name. For example, "$47 cost"
Now, I don't know if they wanted me to make up my own prices or use theres so tell me if im right or wrong.
I did:
85 product + 47 cost 13 expenses
85p - 47c = 38 markup/ gross profit
Markdowns
85p x .15d = 12.75d
85p - 12.75 = 72.25 sale price
72.25 is what I get.
Based on the information given, it seems that you have correctly calculated the markup and gross profit for the product. Here's a breakdown of your calculations:
Retail price = $85
Cost = $47
Expenses = $13
Markup/Gross Profit:
To calculate the markup, you subtract the cost from the retail price:
Markup = Retail price - Cost
Markup = $85 - $47
Markup = $38
Sale price using markdown:
To calculate the sale price after applying a 15% discount:
Discount amount = Retail price x Discount rate
Discount amount = $85 x 0.15
Discount amount = $12.75
Sale price = Retail price - Discount amount
Sale price = $85 - $12.75
Sale price = $72.25
Your calculations for both the markup/gross profit and the sale price after applying the discount seem to be correct. However, please note that it's always a good practice to label each number with the correct name, as asked in the question. So in your calculations, you should have clearly labeled "$85 retail price," "$47 cost," and "$13 expenses" to avoid any confusion.