Assume that the retail price of the product is $85, the cost is $47, and the expenses are $13. Compute a new sale price using the formula for markdowns, assuming a 15 percent discount.

Question

This is what I did, but I don't know where to incorporate the $13 expenses.

$85 retail price + $47 cost
$85 retail price – $47 cost = $38 markup / gross profit
Markdowns
$85 retail price x .15 discount = $12.75 markdown
$85 retail price – $12.75 markdown = $72.25 sale price

Answer 1

all you really need is the $85 price. A 15% discount gives $72.25

No mention is made of adjusting for profit or costs.