Question 830981
The cost of the item is $275. That is what the merchant paid for that item.
 
The merchant sold the item at 35% off $549.
We could calculate 35% of $549 and then subtract the result from $549,
but it is easier to calculate the sale price as 65% of $549.
100% of any price - 35% of the same price = 100%-35% of the price =65% of the price.
Percentages are really fractions, and 65% is 65 out of each 100 or {{{65/100=0.65}}} .
We calculate 65% of $549 by multiplying $549 times 0.65.
{{{0.65*("$ 549")="$ 356.85"}}} .
That is what the merchant received when the item was sold.
 
The store's operating expenses are calculated as 35% of the cost of that item as
{{{0.35*("$ 275")="$ 96.25"}}} .
 
The merchant had expenses of $275 + $96.25 = $371.25,
and got back only $356.85.
That is a net loss of $371.25 - $356.85 ={{{highlight("$ 14.40")}}}