Answer to Question #119120 in Algebra for gagan

Question

A retailer purchased 400 hats at $15 each. He sold 250 at the regular price of $40, 100 at
20% off the regular price and the remaining hats were cleared out at $15 each. The
retailer's overhead is 35% of the cost. What is the total operating profit (or loss) on the sale
of all the hats?

Answer 1

$C=\$15\cdot400(1+{35\over 100})=\$8100$

$R=\$40\cdot250+\$40({100-20\over 100})\cdot 100+\$15\cdot(400-250-100)=$ $=\$13950$

$P=R-C=\$13950-\$8100=\$5850$

The total operating profit on the sale of all the hats is $\$5850.$