Problema Solution
A jewelry store expects its overhead to be 25% of sales, and its net profit is 50% of sales. At what price should it price a watch that cost the store $40 less than 20%?
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Answer provided by our tutors
sicne, overhead = 25%, and net profit is 50%, then cost = 25% of sales.
Also cost is 40 less than 20% = 40-8 = $32
So, sales = 32*4 = $128