SOLUTION: The Cellphone Company buys iPhones at PhP24,000. Expenses are set at 17% of the selling price and the required profit is set at 20% of the selling price. During a weekend sale, the
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-> SOLUTION: The Cellphone Company buys iPhones at PhP24,000. Expenses are set at 17% of the selling price and the required profit is set at 20% of the selling price. During a weekend sale, the
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Question 1110013: The Cellphone Company buys iPhones at PhP24,000. Expenses are set at 17% of the selling price and the required profit is set at 20% of the selling price. During a weekend sale, the iPhone is sold at 10% discount.
A. What is the regular selling price of the iPhone?
B. What is the sale price of the iPhone?
C. How much did The Cellphone Company gain or lose when the iPhone was sold during the weekend sale?
Thank You in Advanced.. ;)
You can put this solution on YOUR website! let s equal the regular selling price of the iphone.
let c = the cost of the iphone.
let e = the expenses related to selling of the iphone.
let p = the required profit to be made by selling the iphone.
equations for selling price is:
s = c + e + p
c = 24000
e = .17 * s
p = .20 * s
equation becomes s = 24000 + .17 * s + .20 * s
combine like terms to get s = 24000 + .37 * s
subtract .37 * s from both sides of the equation to get s - .37 * s = 24000
combine like terms to get .63 * s = 24000
divide both sides of the equation by .63 to get s = 24000 / .63 = 38095.2381.
the regular selling price of the iphone is set at 38095.2381.
e = .17 * s becomes e = 17 * 38095.2381 becomes e = 6476.190476.
p = .20 * s becomes p = .20 *38095.2381 becomes p = 7619.047619.
we have s = 38095.2381
subtract e = 6476.190476 from s to get s - e = 31619.04762.
that's the regular selling price of the iphone
p = s - e - c becomes p = 31619.04762 - 24000 = 7619.047619.
that's the profit on the regular selling price of the iphone after expenses have been deducted and after the cost of the iphone has been deducted.
since p is the same as we calculaed earlier, then p = .20 * s is confirmed to be true when selling at the regular price.
so far eveything checks out.
during the weekend sale, the iphone was sold at 10% discount.
d = s - .10 * s becomes d = .90 * s which becomes d = .9 * 38095.2381 which becomes d = 34285.71429.
that's the discounted sale price of the iphone.
p = d - e - c becomes p = 34285.71429 - 6476.190476 - 24000 which becomes p = 3809.52381.
the profit is now 3809.52381 rather than the originally anticipated profit of 7619.047619
this is half the expected profit, but it is still a profit.
the cell phone company gained 3809.52381 when it sold the iphone during the weekend sale event.
the answers to the questions are:
A. What is the regular selling price of the iPhone?
the regular selling price is 38095.2381.
B. What is the sale price of the iPhone?
the sale price is 34285.71429.
C. How much did The Cellphone Company gain or lose when the iPhone was sold during the weekend sale?
the cellphone company gained 3809.52381 when the iphone was sold during the weekend sale event.
