A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is the final selling price?
A) $352.80
B) $211.68
C) $117.98
D) $86.43
E) $52.10

Question

Quizplus · Accepted Answer

The product's original price is $350. The successive discounts of 30%, 20%, and 10% are applied first. The price after the first discount is $350 * 0.7 = $245. After the second discount, it's $245 * 0.8 = $196. After the third discount, it's $196 * 0.9 = $176.40. This is the price before adding overhead and profit. To find the selling price that includes a 30% overhead and a 20% profit on the selling price, we set up the equation $176.40 = S - 0.3S - 0.2S, where S is the selling price. Solving for S gives $176.40 = 0.5S, so S = $352.80. This is the price before the final 40% markdown. The final selling price after the 40% markdown is $352.80 * 0.6 = $211.68.

A Product Costing $350, Less 30%, 20%, and 10%, Sells