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Anvisha [2.4K]
3 years ago
15

Kabul’s bookshop marks up all books by 40 percent of their cost. The overhead rate is 16 percent of the selling price. What is t

he net profit rate on the book that costs Kahils 18.10?
Mathematics
1 answer:
morpeh [17]3 years ago
4 0

Answer:

The net profit rate on the book is 5.41

Step-by-step explanation:

Given as :

The marks up percentage of book = m = 40%

The overhead rate is 16% of selling price

The cost price of book = c.p = $18.10

Let The profit = $p

Let The selling price = s.p

<u>Now, According to question</u>

mark up percentage = \dfrac{s.p - c.p}{c.p}

I.e 40% =  \dfrac{s.p - 18.10}{18.10}

Or, \dfrac{40}{100} + 1 = \dfrac{s.p}{18.10}

Or, \dfrac{140}{100} =  \dfrac{s.p}{18.10}

Or, s. p = \dfrac{140\times 18.10}{100}

∴ s.p = $25.34

So, selling price of book = s.p = $25.34

Now, The overhead percentage = 16%

i.e overhead rate = \dfrac{\textrm estimated cost}{\textrm estimated total base unit}

Or, estimated cost = 16% × 25.34

I,e estimated cost = 0.16 × 25.34

∴ estimated cost = $4.05

Now,

Profit = selling price of book - estimated book cost

I.e p = $25.34 - $4.05

∴ p = $21.29

So, The profit rate% = \dfrac{\textrm profit}{\textrm estimated cost}

I.e The profit rate% = \dfrac{21.29}{4.05}

∴ profit rate %= 5.41

So, The profit rate = p = 5.41

Hence, The net profit rate on the book is 5.41  Answer

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