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.
Mathematics · High School · Sun Jan 24 2021
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Given the statement:
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,
Determine the selling price.
Solution:
In order to determine the selling price, we simply need to find first the cost of the printer tables, by dividing the markup price with 20% converted to decimal. In converting a percentage into decimal, divide the percentage by 100, hence in converting a decimal to percentage, multiply the percentage by 100.
= 20/100
= 0.2
= $8.95/0.2
= $44.75
Now that we know the price of the printer cables, we must simply add the markup price and the overhead price.
= $44.75 + $8.95 + $4.31
= $58.01
Final answer:
The selling price is $58.01