Question

Judy Garland Electronics operate on a net-profile rate of 20% on its printer cables. If the markup is $8.95 and the overhead is $4.31,find the net profit and the selling price? Use the net-profit rate formula to solve this problem.

Answer 1

Answer:

The selling price is $79.53 .

Step-by-step explanation:

Formula

$Profit\ percentage = \frac{Profit\times 100}{Cost\ price}$

Let us assume that the cost price be x .

As given

Judy Garland Electronics operate on a net-profile rate of 20% on its printer cables.

If the markup is $8.95 and the overhead is $4.31 .

Selling price = Cost price + Markup price + Overhead price

Putting all the values in the above

                   = x + 8.95 + 4.31

                  = x + 13.26

Profit = Selling price - Cost price

         = x + 13.26 - x

         = 13.26

Putting all the values in the above

$20 = \frac{13.26\times 100}{x}$

$x = \frac{13.26\times 100}{20}$

$x = \frac{1326\times 100}{20\times 100}$

$x = \frac{1326}{20}$

x = $ 66.3

Thus

Selling price = x + 13.26

                    = 66.3 + 13.26

                    = $ 79.53

Therefore the selling price is $79.53 .