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 regular selling price?
A) $264.60
B) $300.00
C) $315.00
D) $352.80
E) $385.00

Question

Quizplus · Accepted Answer

The regular selling price is calculated by applying the successive discounts to the original price: $350 - 30% = $245, $245 - 20% = $196, $196 - 10% = $176.40. To cover overhead and profit, the selling price must be such that $176.40 is 50% (100% - 30% overhead - 20% profit) of the selling price. Solving for the selling price gives $352.80.

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