Question

Onondaga Electronics operates on a net-profit rate of 20% on its printer cables. If the markup is $8.95 and the overhead is $4.31, find the selling price.

Answer 1

Answer:

The selling price be $79.56 .

Step-by-step explanation:

Let us assume that the cost price be x.

As given

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

Selling price = Cost price + Markup price + Overhead price

                    =  x + 8.95 + 4.31

                    = x + 13.26

Profit = Selling price - Cost price

         =  x + 13.26 - x

         = $ 13.26

Formula

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

Putting the values in the above formula

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

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

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

x = $ 66.3

Thus cost price be $66.3 .

Thus

Selling price =  $66.3 + $13.26

                     = $ 79.56

Therefore the selling price be $79.56 .