Madule 2 Homewark: O xeta.mteucatio.comC Solved: On July & 2013 xChegg Stusty Gu
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Madule 2 Homewark: O xeta.mteucatio.comC Solved: On July & 2013 xChegg Stusty Guided xhaw to sereenshaot -Bi Cezlo.mheducalion.om/h.lp Apps ? Rockmarks um Rlaremet (n MacRumors , PANA Other bookmarks cody short Math for Business and Finance: Summer 2018 QM Module 2 Homework: On-line Sections instructions help Question 30 (of 30) Save &Ext; Submit 30. 33 points On February 8, 2014, Leon's Kitchen Hut bought a set of pots with a $124 list price trom Lambert Manufacturing. Leon's receives a 25% trade discount. Terms of the sale were 2/10, n/30. On February 14 Leon's sent a check to Lambert for the pots. Leon's expenses are 19% of the selling price. Leon's must also make a profit of 18% of the selling price. A competitor marked down the same set of pots 24%. Assume Leon's reduces its selling price by 38%. a. What is the sale price at Kitchen Hut? (Do not round intermediate calculations. Round your answer to the nearest cent.) Sale price References eBook & Resources Worksheet Learning Objective: 12-02 (2) Calculate selling price when cost and percent markup G:14 PM 615/2018 21Explanation / Answer
Purchase Price
List price = $124
We get a 25% trade discount on this -
Actual Purchase price = $124 - (25% x $124) = $93
Now, 2/10 net 30 means you get a 2% cash discount if you pay within 10 days and since you do so, you will take another 2% discount on top of above price -
Actual purchase cost per pot = $93 - (2% x $93) = $91.14
Sale price
Let the sale price be 'p'.
Profit = 18% of p = 0.18p
Expenses = 19% of p = 0.19p
Now, Profit = Sales - Expenses - Purchase cost
or, 0.18p = p - 0.19p - $91.14
or, $91.14 = 0.63p
or, p = $144.666666666
Also, you reduce this price by 38% -
Actual Sale price = $144.666666666 - (38% x $144.666666666) = $89.69333333 or $89.69
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