Solve the problem.
-A furniture store buys 40 footstools from a distributor at a cost of $190 each plus an overhead charge of $20 per order. The retail markup is 25% on the total price paid. Find the profit on the sale
Of one footstool.
A) $4763.00
B) $47.50
C) $47.38
D) $47.63

Question

Quizplus · Accepted Answer

The total cost for 40 footstools is 40 * $190 + $20 = $7600. The cost per footstool is $7600 / 40 = $190.50. The retail price with a 25% markup is $190.50 * 1.25 = $238.125. The profit per footstool is $238.125 - $190.50 = $47.625, which rounds to $47.63.

Solve the Problem. -A Furniture Store Buys 40 Footstools from a Distributor at a Distributor