Question

Pyotr Tchaikovsky Sporting Goods operates on a 45% overhead based on the selling price, which results in an overhead of $65.34 on the newest version of an air hockey game set. If the air hockey game set costs Pyotr Tchaikovsky Sports $49.32, find the selling price, the markup, and the net profit.

Answer 1

Selling price of hockey game set is $145.32 , markup price is $210.54 and profit is $96 .

Explanation:

Let us assume that the selling price of hockey game set be x .

As given

Pyotr Tchaikovsky Sporting Goods operates on a 45% overhead based on the selling price, which results in an overhead of $65.34 on the newest version of an air hockey game set.

45% is written in the decimal form .

`= (45)/(100)`

= 0.45

Thus the equation becomes

0.45 × x = 65.34

0.45x = 65.34

`x = (65.34)/(0.45)`

x = 145.2

Therefore the selling price of the hockey game set is $145.2 .

Thus

Markup price = Selling price + Overhead Price

= $145.2 + $65.34

= $ 210.54

As given

If the air hockey game set costs Pyotr Tchaikovsky Sports $49.32 .

i.e Cost price of the hockey game set = $ 49.32

Profit = Selling price - Cost price

= 145.32 - 49.32

= $ 96

Therefore selling price of hockey game set is $145.32 , markup price is $210.54 and profit is $96 .