math question: "Ella buys a machine for $8500, less discounts of 20%and 15%...."

[GaryFung0505]

math question: "Ella buys a machine for $8500, less discounts of 20%and 15%...."

. Ella buys a machine for $8500, less discounts of 20%and 15%. The overhead expenses are 8% on cost andshe plans to make a profit of 60% on cost.
a. What is the regular selling price?
b. What is the profit or loss if she offers amarkdown of 22%?
c. What is the maximum markdown rate she canoffer to sell at the break-even price?

 

[stapel]

Ella buys a machine for $8500, less discounts of 20%and 15%.

So what was her buying cost? Hint: Multiply. (Learn "percent of" word problems here.)

The overhead expenses are 8% on cost

So what is her expected overhead expense on this purchase? Hint: Multiply.

and she plans to make a profit of 60% on cost.

So what is her expected profit? Hint: Multiply.

a. What is the regular selling price?

The selling price must cover the buying cost, the expenses, and the profit margin. Hint: Add.

b. What is the profit or loss if she offers a markdown of 22%?

What would be the new selling price? Hint: Multiply.

Given the fixed buying cost and overhead expense, how much will she make or lose? Hint: Subtract. Is this a profit or a loss? Of how much?

c. What is the maximum markdown rate she can offer to sell at the break-even price?

Given the fixed buying cost and overhead expense, what must be her break-even price? How much will she have had to subtract from the original selling price? What percentage is this of the original selling price?

If you get stuck, please reply showing all of your thoughts and efforts so far, starting with your answers to the questions above. Thank you!