Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
-The Galerie d'Art paid $138.60 for a limited edition Graux print. The original selling price was $180.18, but this was marked down 25% to make room for incoming pieces. If operating expenses are 28% of cost, find the operating loss and the absolute loss.
A)operating loss: $45.04
Absolute loss: $3.46
B)operating loss: $3.46
Absolute loss: $42.27
C)operating loss: $42.27
Absolute loss: $45.04
D)operating loss: $42.27
Absolute loss: $3.46

Question

Quizplus · Accepted Answer

Operating loss is calculated as 28% of the cost ($138.60), which is $38.81 (rounded to the nearest cent). The absolute loss is the difference between the cost and the final selling price after the discount. The selling price after a 25% discount on $180.18 is $135.14 ($180.18 - 25% of $180.18), so the absolute loss is $138.60 (cost) - $135.14 (selling price) = $3.46. However, there seems to be a mistake in my calculation of the operating loss, which should be based on the cost. Correctly, 28% of $138.60 is approximately $38.80, indicating a discrepancy in the provided options and explanation. The correct approach to find the operating loss would involve calculating 28% of the cost directly, and the absolute loss correctly follows from the difference between the cost and the selling price. Given the options, none directly match the correct calculation for operating loss based on the cost provided, suggesting a need for recalculating based on the correct method. The absolute loss calculation stands correct as per the explanation.

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