SOLUTION: Appliance Store realizes a mark-up of PhP3,450 in selling TV sets. If its items are sold at a mark-up of 40% of the selling price, A. What is the regular selling price of the TV

Question 1110012: Appliance Store realizes a mark-up of PhP3,450 in selling TV sets. If its items are sold at a mark-up of 40% of the selling price,
A. What is the regular selling price of the TV set?
B. What was the cost of the TV set?
C. What is the rate of mark-up based on cost for the TV set?
D. If overhead expenses are at 27% of the cost, what is the break-even price of the TV set?
E. If the TV set is sold at PhP7,500, how much profit or loss is incurred by Appliance Store?
Thank You in Advanced.. ;)

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
let s = the selling price.

the selling price presumably includes the cost plus the mark up plus the anticipated profit.

you have s = c + m + p

since m = 3450 and m = .4 * s, then you get:

.4 * s = 3450.

solve for s to get = 3450 / .4 = 8625.

your equation of s = c + m + p becomes:

8625 = c + 3450 + p

you don't know what p is supposed to be.
you don't know what c is supposed to be.

you need p to solve for c.

you need c to solve for p.

the best you can do is solve for c in terms of p, or solve for p in terms of c.

solving for c in terms of p gets you:

c = 8625 - 3450 - p which becomes c = 5175 - p

solving for p in terms of c gets you:

p = 8625 - 3450 - c which becomes p = 5175 - c.

you say that overhead expenses are 27% of the cost.

does this assume that overhead expenses are included in the cost.

regardless, if you don't know the cost, you can't solve for the overhead expenses.

i don't think you can solve this problem with the information given.

you might want to check to see if you're missing some information required to solve it.

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