MATHEMATICS OF BUSINESS AND FINANCE (A) Company A and Company B sell the same model camera...

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MATHEMATICS OF BUSINESS AND FINANCE
(A) Company A and Company B sell the same model camera for $105and $135, respectively. During a sale, Company A offers a discountof 10% on the camera. What should Company B's rate of markdown beon the camera to match Company A's sale price?
(B) A dealer purchased machinery for $64,500.00 per unit. Hisoverhead expenses are 30.00% of the cost and he desires anoperating profit of 35.00% of the cost. During a sale, he offers amarkdown of 30.00%.
a. Calculate the reduced selling price perunit. (Round to the nearest cent)
b. Calculate the break-even price. (Round tothe nearest cent)
c. Calculate the profit or loss made per unitat the reduced selling price. Round your answer to two decimalplaces. Use a negative sign to represent a loss

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3.7 Ratings (568 Votes)

	Company A	Company B
Selling Price	$105	$135
Discount	10.5	$40
Reduced Selling Price	$95	$95

Rate of Markdown by company B to match the selling price with company A

Discount that Company B have to allow = Company B selling Price- Company A Reduced Selling Price
Discount that Company B have to allow = $135-$95
Discount that Company B have to allow	=	$40

Percentage	=	29.63%

Machinery	64500	64500
Overhead	30%	27642.85
Operating Profit	35%	32250.05


a. Reduced Selling Price per unit= Machinery Cost+Overhead+Operating Profit-Sales Discount
=(64500+27642.85+32250.05)*.7
87075.03

b. Break even Price
Break even Price = Machinery Cost+Overhead
=64500+27642.85
92142.85

c. Net Profit/Loss:
Sales Price	$124,392.90
Less Discount	$37,317.87
Discounted sales price	$87,075.03
Less Total Cost	$92,142.85
Loss	-$5,067.82

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Transcribed Image Text

MATHEMATICS OF BUSINESS AND FINANCE(A) Company A and Company B sell the same model camera for $105and $135, respectively. During a sale, Company A offers a discountof 10% on the camera. What should Company B's rate of markdown beon the camera to match Company A's sale price?(B) A dealer purchased machinery for $64,500.00 per unit. Hisoverhead expenses are 30.00% of the cost and he desires anoperating profit of 35.00% of the cost. During a sale, he offers amarkdown of 30.00%.a. Calculate the reduced selling price perunit. (Round to the nearest cent)b. Calculate the break-even price. (Round tothe nearest cent)c. Calculate the profit or loss made per unitat the reduced selling price. Round your answer to two decimalplaces. Use a negative sign to represent a loss