Question

For a special sale, a mens tie buyer plans to promote a $39.99 tie. Consequently, the buyer purchases 450 ties and wants to achieve a 55% markup. An order for 100 ties that cost $20.00 each is also placed by this same buyer. What will be the average cost of the remaining pieces (Show two decimal places)?

Answer 1

Answer:

The average cost of each tie is $56.350

Step-by-step explanation:

We are given that a men tie buyer plans to promote a $39.99 tie. Consequently, the buyer purchases 450 ties

So, Cost of 450 ties = $450 \times 39.99=17995.5$

An order for 100 ties that cost $20.00 each

Cost of 100 ties = $100 \times 20 = 2000$

Total cost price = 17995.5+2000 = 19995.5

Let the selling price of 1 tie be x

Total ties = 450+100 = 550

So, SP of 550 ties =550x

Now we are given that markup is 55%

So, Profit % = 55%

So, $CP = \frac{SP \times 100}{100+P\%}$

Substitute the values

$19995.5 = \frac{550x \times 100}{100+55}$

$19995.5 = \frac{550x \times 100}{155}$

$19995.5 \times 155 = 55000x$

$\frac{19995.5 \times 155}{55000}=x$

$56.350=x$

Hence The average cost of each tie is $56.350