Business Mathematics

[Guest]

I am stuck with the following question...

McIntosh Pet Center purchased two dozen pet travel cages at a cost of $780. Operating expenses for the store are 25% of selling price while total markup on this type of product is 35% of selling price. Only 6 of the cages sell at the original price and the owner decides to markdown the remaining cages. The price is reduced 25% and 6 more cages sell. The remaining 12 cages are marked down 50% of the original selling price and are finally sold.

1) find the operating loss (cost + operating expenses - reduced price)
2) find the absolute loss ( cost - reduced price)

The answer key for these two answer is 1) 150 2) none.

Can anyone work out the steps for these questions as I can't correctly get the answer?

Thanks a lot!!!!

 

[mowlick]

I am stuck with the following question...

McIntosh Pet Center purchased two dozen pet travel cages at a cost of $780. Operating expenses for the store are 25% of selling price while total markup on this type of product is 35% of selling price. Only 6 of the cages sell at the original price and the owner decides to markdown the remaining cages. The price is reduced 25% and 6 more cages sell. The remaining 12 cages are marked down 50% of the original selling price and are finally sold.

1) find the operating loss (cost + operating expenses - reduced price)
2) find the absolute loss ( cost - reduced price)

The answer key for these two answer is 1) 150 2) none.

Can anyone work out the steps for these questions as I can't correctly get the answer?

Thanks a lot!!!!

Are you sure that there hasn't been a typo Christywcy?

If the operating expenses for the store are 25% of the purchase[/] price then (i) works out fine

Purchase price of two dozen pet travel cages is $780.

therefore each cage costs 780/24 = $32.5

The shop's markup is 35% of selling price.

Therefore the cages are sold at (32.5/65) x 100 = $50

The shop sells 6 at this price

6 x $50 = $300

The next 6 are sold at a reduction of 25% in the price

6 x ($50 x 3/4) = $225

The next 12 are sold at 50% off

12 x ($50 x1/2) = $300

Therefore total sale = $300 + $225 + $300 = $825

The cages cost the shop $780

If operating expenses are 25% of the purchase price then expences =

$780 x 1/4 = $195

therefore operating loss =

cost + operating expenses - reduced price =

$780 + $195 - $825 =

$975 = $825 =

$150

..............

Part (2) has me beat