SOLUTION: appliance store realizes a mark-up of php 3450 in selling tv sets if it's items are sold at a mark-up of 40% of the selling price A. What is the regular selling price of the tv s

Question 1170697: appliance store realizes a mark-up of php 3450 in selling tv sets if it's 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 tv set
C. What is the rate of markup based on cost for the tv set
D. If overhead expenses are a 27% of the cause what is the break even price of the tv set.
E.if the tv set is sold at php 7500 how much profit or loss is incurred in by appliance store.
Answer by CPhill(1959) (Show Source): You can put this solution on YOUR website!
Let's break down this problem step by step:
**A. What is the regular selling price of the TV set?**
* Let SP be the selling price.
* Mark-up = 40% of SP = 0.40 * SP
* Mark-up = PHP 3450
So, 0.40 * SP = 3450
SP = 3450 / 0.40
SP = PHP 8625
**B. What was the cost of the TV set?**
* Cost (C) + Mark-up = Selling Price (SP)
* C + 3450 = 8625
* C = 8625 - 3450
* C = PHP 5175
**C. What is the rate of markup based on cost for the TV set?**
* Rate of markup based on cost = (Mark-up / Cost) * 100%
* Rate of markup based on cost = (3450 / 5175) * 100%
* Rate of markup based on cost ≈ 0.66666 * 100%
* Rate of markup based on cost ≈ 66.67%
**D. If overhead expenses are 27% of the cost, what is the break-even price of the TV set?**
* Overhead expenses = 27% of Cost = 0.27 * 5175
* Overhead expenses = PHP 1397.25
* Break-even price = Cost + Overhead expenses
* Break-even price = 5175 + 1397.25
* Break-even price = PHP 6572.25
**E. If the TV set is sold at PHP 7500, how much profit or loss is incurred by the appliance store?**
* Selling price (new) = PHP 7500
* Cost = PHP 5175
* Profit/Loss = Selling price (new) - Cost
* Profit/Loss = 7500 - 5175
* Profit/Loss = PHP 2325
Since the result is positive, it's a profit.
**Summary of Answers:**
A. Regular selling price: PHP 8625
B. Cost of the TV set: PHP 5175
C. Rate of markup based on cost: 66.67%
D. Break-even price: PHP 6572.25
E. Profit: PHP 2325

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