Business, 06.09.2019 18:20, Jasten

Ahardware buyer plans to purchase 75 ladders which will retail for $35 each. he has already placed an order for 48 ladders at $16.50 each. what is the most he can pay for each of the remaining ladders if he is to obtain a 48% markup goal?

Answers: 1

Show answers

Answers

answered: iicekingmann

The most he can pay for each of the remaining ladders if he is to obtain a 48% markup goal is $36.357.

Explanation:

A hardware buyer plans to purchase 75 ladders which will retail for $35 each. This means that he is going to sell each ladder for $35, regardless of how much he paid for them before.He has already placed an order for 48 ladders at $16.50 each. So out of the 75 ladders he is planning to purchase and then sell, he bought 48 at a reduced price of only $16.50 each. Now if we subtract those numbers, as shown below, we determine that he still needs to buy 27 more ladders at an unknown price:

(75 - 48) ladders = 27 ladders

What is the most he can pay for each of the remaining ladders if he is to obtain a 48% markup goal? So we need to determine the maximum price for each of the remaining 27 ladders if he is to obtain a 48% markup goal.

Markup in this case is just a measure of the ratio (in %) between the profit made (by selling 75 ladders for $35 each) to the cost paid (by buying 48 of them at $16.5 each and 27 of them at an unknown price). Its formula is as follows:

$Markup=\frac{Profit}{Cost}*100$

Now, we already have our markup goal of 48%, so we can substitute that number into the formula, and divide both sides of the equation by 100:

$48=\frac{Profit}{Cost}*100\\0.48=\frac{Profit}{Cost}\\\frac{Profit}{Cost}=0.48$

We know that Cost is the sum of what he paid for the 48 ladders, plus what he is to pay for the remaining 27 ladders, so it should look something like this:

$Cost=(48ladders*16.5\frac{dollars}{ladder} )+(27ladders*x)$

Cost=(792 dollars)+(27ladders*x)

Where 'x' is the maximum price he can pay for each of the remaining 27 ladders if he is to obtain a 48% markup goal.

We should also know that Profit is what he gets by selling the 75 ladders, minus the cost paid for them. It should look something like this:

$Profit=(75ladders*35\frac{dollars}{ladder} )-[(792dollars)+(27ladders*x)]$

$Profit=(2625dollars)-[(792dollars)+(27ladders*x)]\\Profit=(2625dollars)-(792dollars)-(27ladders*x)\\Profit=(1833dollars)-(27ladders*x)$

Next, we want to substitute what we have so far for Cost and Profit into the worked Markup formula we had written before, and solve the equation by isolating our 'x'. To do that, let's follow these steps:

$\frac{Profit}{Cost}=0.48$

$\frac{(1833dollars)-(27ladders*x)}{(792 dollars)+(27ladders*x)}=0.48\\1833dollars-27ladders*x=0.48*[792 dollars+27ladders*x]\\1833dollars-27ladders*x=380.16dollars+12.96ladders*x$

At this point, we want to transfer the 'x' terms to one side of the equation, and the other terms to the other side, so we get to the

$1833dollars-380.16dollars=12.96ladders*x+27ladders*x\\1452.84dollars=(12.96+27)ladders*x\\1452.84dollars=39.96ladders*x$

Finally, we divide both sides of the equation by 39.96 ladders:

$\frac{1452.84dollars}{39.96ladders} =x\\36.357\frac{dollars}{ladders}=x\\x=36.357\frac{dollars}{ladders}$

So the most he can pay for each of the remaining ladders if he is to obtain a 48% markup goal is $36.357. That means that even if he buys the remaining ladders for a higher price than what he is willing to sell them for, he still obtains a 48% markup goal.

answered: Guest

Ibelieve the answer is medicaid.

answered: Guest

answer; by looking at total product,marginal product,and changes in both after changes in inputs

Other questions on the subject: Business

Business, 21.06.2019 21:30, szambrana

You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces fat and carb-free cheetos. the company stock is expected to earn a 14% annual return; however, 5 years later it is only worth $20,000. turns out there wasn't as much demand for fat and carb-free cheetos as you had hoped. what is the annual rate of return on your investment?

Answers: 1

continue

Business, 22.06.2019 17:50, primmprincess312

Which of the following statements is true of unsought products? as compared to convenience products, unsought products are purchased more frequently. unsought products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. a life insurance policy is an example of an unsought product. unsought products have strong brand identification for which a significant group of buyers is willing to make a special purchase effort. unsought products are those products purchased for further processing or for use in conducting a business.

Answers: 2

continue

Business, 23.06.2019 00:30, ash848

Considered to be a "super tool" or tool that has high use and high potential for improving project success?

Answers: 3

continue

Business, 23.06.2019 02:00, Trumpman137

In his speech on varying explanations of how the earth came into existence, eduardo begins with opinions, moves to inferences, and uses scientific facts in support of his last point. what principle of supporting material organization is eduardo utilizing in his speech?

Answers: 3

continue

Do you know the correct answer?

Ahardware buyer plans to purchase 75 ladders which will retail for $35 each. he has already placed a...