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Math  /  Algebra

QuestionA computer assembly firm purchases computer parts at $245\$ 245 per computer. The operating expenses are 28%28 \% on cost and rate of markup is 50%50 \% on cost. a. What is the selling price of each computer? □\square Round to the nearest cent b. What is the operating profit per computer? □\square Round to the nearest cent

Studdy Solution

STEP 1

1. The cost to purchase computer parts per computer is $245.
2. Operating expenses are 28% of the cost.
3. The rate of markup is 50% on the cost.
4. We need to find the selling price of each computer.
5. We need to find the operating profit per computer.

STEP 2

1. Calculate the operating expenses per computer.
2. Calculate the selling price of each computer.
3. Calculate the operating profit per computer.

STEP 3

Calculate the operating expenses per computer.
The operating expenses are 28% of the cost. Therefore, calculate 28% of $245:
Operating Expenses=0.28×245 \text{Operating Expenses} = 0.28 \times 245
Operating Expenses=68.60 \text{Operating Expenses} = 68.60

STEP 4

Calculate the selling price of each computer.
The rate of markup is 50% on the cost. Therefore, calculate 50% of $245:
Markup=0.50×245 \text{Markup} = 0.50 \times 245
Markup=122.50 \text{Markup} = 122.50
Add the markup to the original cost to find the selling price:
Selling Price=245+122.50 \text{Selling Price} = 245 + 122.50
Selling Price=367.50 \text{Selling Price} = 367.50

STEP 5

Calculate the operating profit per computer.
The operating profit is the selling price minus the cost and the operating expenses:
Operating Profit=Selling Price−(Cost+Operating Expenses) \text{Operating Profit} = \text{Selling Price} - (\text{Cost} + \text{Operating Expenses})
Operating Profit=367.50−(245+68.60) \text{Operating Profit} = 367.50 - (245 + 68.60)
Operating Profit=367.50−313.60 \text{Operating Profit} = 367.50 - 313.60
Operating Profit=53.90 \text{Operating Profit} = 53.90
The selling price of each computer is 367.50 \boxed{367.50} .
The operating profit per computer is 53.90 \boxed{53.90} .

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