Question

Ralph's Electronics purchased 75 sound bars from the manufacturer for $250 each less discounts of 25% and 12%. The regular markup on the sound bar is 60% of the regular selling price, and Ralph's Electronics overhead is 10% of the regular selling price. On the Black Friday sale, the sales price was reduced to $199.

The regular selling price =?

Profit or loss (please indicate which one) on each sound bar at the sale price = ?

Answer 1

Here , we have -

Number of sound bars purchased = 75

Cost price of each sound bar = $ 250

Therefore , Total cost of purchasing 75 sound bars = $ 250 * 75 = $ 18,750

Now , since he is getting two successive discounts of 25% and 12% on the purchases made .

Thus , Actual cost price would be obtained by subtracting the discounts 25% and 12% of the CP successively .

i.e., ,

Again ,

Thus , the actual price of the sound bars = $ 12,375

Further , since the electronic overhead i.e., additional expenses of Ralph is 10% , therefore , these constitute a part of the cost price .

So , Total cost price of the sound bars becomes -

Hence , Ralph costs overall $ 13,612.5 on purchasing 75 sound bars .

Now , it is being given that the markup is 60% i.e., he marks the selling price of the sound bars by increasing its price by 60% .

Thus , Regular selling price of all sound bars is -

i.e., selling price of 75 sound bars = $ 21,780

Regular selling price of each sound bar = 21,780/75 = $ 290.4

Hence , regular selling price of each sound bar = $ 290.4

Now , on black friday sale -

We have -

Total cost price of 75 sound bars = $ 13,612.5

Therefore , cost price of each sound bar = 13,612.5/75 = $ 181.5

While

sales price of each sound bar = $ 199 .

Clearly , sales price of each sound bar is greater than its cost price , therefore , there is profit .

Hence , Ralph is in profit even on black friday sale .