financial problem

[dmillionaire]

Hey im having some trouble with this question

Maritime Cellular purchases a BlackBerry smartphone model for $430 less trade discounts of 20% and 10%. Maritime’s overhead expenses are $51 per unit. a. What should be the selling price to generate a profit of $40 per phone? answer: 400.60 <--------- ( got this answer ) b. What is the rate of markup on cost? c. What is the rate of markup on selling price? d. What would be the break-even selling price for the Annual Clear-Out Sale? heres my work so far s = 430 c = 430 ( 1 - .02) ( 1 - .01) = 309.6 m = 309.6 - 430 = 120.4 e = 51

m (up) c = M/C x 100
m (up) s = M/S x 100


thank you for any help

 

[dmillionaire]

e = expenses = 51$

 

[DrPhil]

Hey im having some trouble with this question

Maritime Cellular purchases a BlackBerry smartphone model for $430 less trade discounts of 20% and 10%. Maritime’s overhead expenses are $51 per unit. a. What should be the selling price to generate a profit of $40 per phone? answer: 400.60 <--------- ( got this answer ) b. What is the rate of markup on cost? c. What is the rate of markup on selling price? d. What would be the break-even selling price for the Annual Clear-Out Sale? heres my work so far s = 430....didn't you find a selling price of $400.60 in part(a) ?? c = 430 ( 1 - 0.2) ( 1 - 0.1) = 309.6 m = 309.6 - 430 = 120.4....markup $40.00 ?? e = 51

m (up) c = M/C x 100 %....total cost is c+e ??
m (up) s = M/S x 100 %


thank you for any help

I am not completely familiar with business jargon, so you have to decide whether my interpretation of the problem is correct. In particular, the $430 looks like the manufacturer's suggested price, not the price Maritime is going to charge. And I don't know for sure whether e is considered to be part of cost, or part of markup.