Problem

A hardware store buys outdoor lights for $\$ 7.00$ per dozen less $20 \%, 19 \%$. The store's overhead is $48 \%$ of cost and the required profit is $25 \%$ of cost. For how much per dozen should the lights be sold? The selling price should be $\$ 783$ per dozen. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Solution

Step 1 :First, calculate the cost price per dozen after the discounts: \(\$7.00 \times (1 - 0.20) \times (1 - 0.19) = \$7.00 \times 0.80 \times 0.81 = \$4.536\)

Step 2 :Next, calculate the overhead cost: \(0.48 \times \$4.536 = \$2.17728\)

Step 3 :Now, calculate the required profit: \(0.25 \times \$4.536 = \$1.134\)

Step 4 :Add the cost price, overhead cost, and required profit to find the selling price per dozen: \(\$4.536 + \$2.17728 + \$1.134 = \$7.84728\)

Step 5 :Round the selling price to the nearest cent: \(\boxed{\$7.85}\)

From Solvely APP
Source: https://solvelyapp.com/problems/38815/

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