Confused about an question regarding markup/markdown

[Zxyxz]

Beginner Business Math confused about Markup/Markdown

Hi, I'm very confused about a particular question while I was doing homework. The question goes ;

'Homeguard hardware buys cat litter for 6$ less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost.'

f)What operating profit or loss is made if the bag is sold for $6?



I've completed the questions previous to this, but this one really stumped me. The relation I've used for the other questions was S = C + E + P. I already found out that C=4.80, E=2.16, P=0.96 and S=7.92, and to find the profit/loss if I were to sell it for $6, I'd have to solve for P.

What steps would I have to do to solve or start out the question? It sounds pretty simple, but I just have no idea how to find the profit/loss if it is sold for 6$. I don't know where or how to begin, I tried looking up notes in the book and online but that didn't help much. I'm just utterly lost. Any help would be appreciated, thanks. ^^

 

[stapel]

'Homeguard hardware buys cat litter for 6$ less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost.'

f) What operating profit or loss is made if the bag is sold for $6?

What is twenty percent of $6? (Hint: Multiply.)

What then is the cost? (Hint: Subtract.)

What is forty-five percent of the cost? (Hint: Multiply.)

What is twenty percent of the cost? (Hint: Multiply.)

What then is the total required income (to cover cost, overhead, and profit)? (Hint: Add.)

How does this value differ from the cost of $6? (Hint: Subtract.)

The relation I've used for the other questions was

S = C + E + P. I already found out that C=4.80, E=2.16, P=0.96 and S=7.92, and to find the profit/loss if I were to sell it for $6, I'd have to solve for P.

What are the meanings of "S", "C", "E", and "P"? What do you mean when you say that you "have to solve for P" when you say that you've already found the value of P? How did you obtain these values? How have you related the meanings of the terms ("profit", "cost", etc) to the values?

Please be complete, showing your work in answering the questions above. Thank you!

 

[Zxyxz]

What is twenty percent of $6? (Hint: Multiply.)

What then is the cost? (Hint: Subtract.)

What is forty-five percent of the cost? (Hint: Multiply.)

What is twenty percent of the cost? (Hint: Multiply.)

What then is the total required income (to cover cost, overhead, and profit)? (Hint: Add.)

How does this value differ from the selling price of $6? (Hint: Subtract.)


What are the meanings of "S", "C", "E", and "P"? What do you mean when you say that you "have to solve for P" when you say that you've already found the value of P? How did you obtain these values? How have you related the meanings of the terms ("profit", "cost", etc) to the values?

Please be complete, showing your work in answering the questions above. Thank you! [/COLOR][/SIZE][/FONT]

I have to find P (Profit loss) when the selling price is 6$.

The meaning of the individual letters are ;
S=Selling Price
C=Cost (Or the list price.)
E=Overhead Expenses
P=Profit Loss.
I obtained the values that I posted on the first post by doing Cost=6 (1-.20), Overhead Expenses=0.45(Whatever the cost is.), Profit Loss=0.20(Whatever the cost is.)

What is twenty percent of $6? (Hint: Multiply.) = 1.2$

What then is the cost? (Hint: Subtract.) = 4.80$

What is forty-five percent of the cost? (Hint: Multiply.) = $2.16

What is twenty percent of the cost? (Hint: Multiply.) = $0.96

What then is the total required income (to cover cost, overhead, and profit)? (Hint: Add.) = $7.92

How does this value differ from the selling price of $6? (Hint: Subtract.) = $1.92

 

[Ishuda]

... The relation I've used for the other questions was S = C + E + P. I already found out that C=4.80, E=2.16, P=0.96 and S=7.92, and to find the profit/loss if I were to sell it for $6, I'd have to solve for P. ...

Not quite. You are given S = $6 and from your formula
P = C + E - S

The S = 7.92 would be the sale price IF there were a profit of 0.96