Problema Solution
A retail store buys 170 VCRs from a distributor at a cost of $210 each plus an overhead charge of $25 per order. The retail markup is 30% on the total price paid. Find the profit on the sale of one VCR.
Answer provided by our tutors
Total price paid: 170*210+25 = $35,725
The retail markup is 30% on the total price paid:
0.30*35,725 = $10,717.5 is the profit for 170 VCRs
The profit on the sale of one VCR is:
(35725 - 10717.5)/170 = $147.10