A department store paid 35.68 for a wine set.Overhead expense is 22% of the regular selling price and profit is 28% of the regular selling price. During a clearance sale, the set was sold at a markdown of 27% What was the operating profit or loss on the sale? The operating square Iwas square intermediate values to six decimal places (Round the final answer to the nearest cent as needed. Round all int as needed.)

Question

A department store paid 35.68 for a wine set.Overhead expense is 22% of the regular selling price and profit is 28% of the regular selling price. During a clearance sale, the set was sold at a markdown of 27% What was the operating profit or loss on the sale? The operating square Iwas square intermediate values to six decimal places (Round the final answer to the nearest cent as needed. Round all int as needed.)

Answer 1

Here's how to calculate the operating profit or loss:1. **Calculate the total percentage of the selling price allocated to overhead and profit:** Overhead + Profit = 22% + 28% = 50%2. **Determine the cost as a percentage of the selling price:** Since overhead and profit represent 50% of the selling price, the cost represents the remaining percentage: 100% - 50% = 50%.3. **Calculate the regular selling price:** If the cost (

35.68 / 0.50 =

71.36 = 0.27 *

19.26725. **Calculate the sale price:** Sale Price = Regular Selling Price - Markdown =

19.2672 =

35.68 + (0.22 *

35.68 +

51.37927. **Calculate the operating profit or loss:** Operating Profit/Loss = Sale Price - Total Cost =

51.3792 =

0.71.

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