Question

A retailer buys a set of plates for 𝑅𝑀 320. Operating expenses incurred during the
sale of these plates are 8 % of the cost price. If the retailer makes a 25 % net profit
based on selling price, find the:
i. selling price

ii. gross profit

iii. net profit

iv. breakeven price

v. maximum markdown that could be offered to customers so that there is no
profit and loss.

vi. net profit or loss if the new selling price is 𝑅𝑀 400.

Answer 1

1. 320+0.08*320 = 345.60 = total cost.
345.60+0.25*345.60 = 432 = selling price.

2. 432-320 = 112.

3. 432-345.60 = 86.40.

4. 345.60.

5. 86.40.

6. 400-345.60 =