Question

Pep Boys Automotive paid $208.50 for a pickup truck bedliner. The original selling price was $291.90, but this was marked down 30%. If operating expenses are 28% of the cost, find the absolute loss

Answer 1

Given:

Cost price = $208.50

Original selling price = $291.90

Percentage marked down = 30%

Operating expenses = 28% of the cost

The absolute loss is the sum of the amount of money lost from marking the product down plus the operating expenses.

The amount of money lost from marking the product down:

`=30\text{ \% of original selling price}`

Hence:

`\begin{gathered} \text{Mark down loss = }(30)/(100)\text{ }*\text{ 291.90} \\ =\text{ \$87.57} \end{gathered}`

The operating expenses in dollars:

`\begin{gathered} =\text{ 28 \% of 208.50} \\ =\text{ }(28)/(100)\text{ }*\text{ 208.50} \\ =\text{ \$ 58.38} \end{gathered}`

Hence, the absolute loss:

`\begin{gathered} \text{Absolute loss = 87.57 + 58.38} \\ =\text{ \$145.96} \end{gathered}`

Answer: $145.96