Pls help me on this, i dunno the answer but i got the answer of my own, but its wrong nad this paper is already marked, but i still cant seem to understand how to solve this!
A furniture store bought an item for $810 less 15%. The store's expenses are 38% of the cost and the operating profit is 22% of the cost. During a sale, the item was marked down by 15%.
a) determine the regualr selling price of the item?
b) Determine the Sale price.
c) What was the profit of loss realized on the item during the sale?
To solve this problem, we need to follow a step-by-step process. Let's break it down:
Step 1: Calculate the cost of the item
The cost of the item can be found by subtracting the 15% discount from the price the furniture store bought it for:
Cost = $810 - 15% of $810
Step 2: Calculate the store's expenses
The store's expenses are 38% of the cost:
Expenses = 38% of Cost
Step 3: Calculate the operating profit
The operating profit is 22% of the cost:
Operating Profit = 22% of Cost
Step 4: Calculate the regular selling price of the item
The regular selling price is the sum of the cost, expenses, and operating profit:
Regular Selling Price = Cost + Expenses + Operating Profit
Step 5: Calculate the sale price of the item
The sale price is obtained by applying a 15% discount to the regular selling price:
Sale Price = Regular Selling Price - 15% of Regular Selling Price
Step 6: Calculate the profit or loss realized during the sale
The profit or loss is the difference between the regular selling price and the sale price:
Profit/Loss = Regular Selling Price - Sale Price
Let's go through each step and calculate the values:
Step 1: Cost
Cost = $810 - 15% * $810 = $810 - ($810 * 0.15) = $810 - $121.50 = $688.50
Step 2: Expenses
Expenses = 38% * $688.50 = $261.63
Step 3: Operating Profit
Operating Profit = 22% * $688.50 = $151.47
Step 4: Regular Selling Price
Regular Selling Price = $688.50 + $261.63 + $151.47 = $1,101.60
Step 5: Sale Price
Sale Price = $1,101.60 - 15% * $1,101.60 = $1,101.60 - ($1,101.60 * 0.15) = $1,101.60 - $165.24 = $936.36
Step 6: Profit/Loss
Profit/Loss = $1,101.60 - $936.36 = $165.24
So, the answers to the questions are:
a) The regular selling price of the item is $1,101.60
b) The sale price of the item is $936.36
c) The profit or loss realized on the item during the sale is $165.24