Solve the problem.
-A retail store buys 35 VCRs from a distributor at a cost of $150 each plus an overhead charge of $30 perorder. The retail markup is 30% on the total price paid. Find the profit on the sale of one VCR.
A)$45.26
B)$4,526.00
C)$45.00
D)$44.74

Question

Quizplus · Accepted Answer

First, we need to calculate the total cost:
$150 per VCR x 35 VCRs = $5,250 cost of the VCRs
$30 overhead charge x 1 order = $30 overhead cost
Total cost = $5,280

Next, we need to add the retail markup:
30% of $5,280 = $1,584 retail markup

Total price for 35 VCRs = $5,280 + $1,584 = $6,864

To find the profit on the sale of one VCR, we need to divide the total profit by the number of VCRs sold:
Profit per VCR = ($6,864 - $5,280) / 35 = $45.26

Therefore, the answer is A) $45.26.

Solve the Problem. -A Retail Store Buys 35 VCRs from a Distributor at a Distributor