Download presentation

Presentation is loading. Please wait.

Published byVictoria Gordon Modified over 3 years ago

1
Selling Price In order to make money by selling a product, you need to sell it for more than it costs. How do you determine how much to charge for a product?

2
Lesson Objective Determine the net profit in dollars. Content Vocabulary operating expenses Also known as overhead, the costs of running a business, such as wages and salaries of employees, rent, utility charges, and taxes.

4
Sport Shop purchases water tubes for $44.98 each. It sells the tubes for $89.99 each. The owner estimates the overhead expenses to be 40 percent of the selling price of the merchandise. What is the net profit on each tube? Example 1

5
Find the markup. Selling Price – Cost $89.99 – $44.98 = $45.01 Example 1 Answer: Step 1

6
Find the overhead. Selling Price × Overhead Percent $89.99 × 40% = $35.996 or $36.00 Example 1 Answer: Step 2

7
Find the net profit. Markup – Overhead $45.01 – $36.00 = $9.01 Example 1 Answer: Step 3

8
Anamaries Shoppe buys chemises at a cost of $12.78. Anamaries sell the chemises at a selling price of $24.49. Its management estimates the overhead expenses to be 34 percent of the selling price of the merchandise. What is the net profit on each chemise sold? Example 2

9
Find the markup. Selling Price – Cost $24.49 – $12.78 = $11.71 Example 2 Answer: Step 1

10
Find the overhead. Selling Price × Overhead Percent $24.49 × 34% = $8.3266 or $8.33 Example 2 Answer: Step 2

11
Find the net profit. Markup – Overhead $11.71 – $8.33 = $3.38 Example 2 Answer: Step 2

12
Find the markup, overhead, and net profit. Selling price: $124.99 Cost: $71.59 Overhead: 40 percent of selling price Practice 1

13
Markup: $53.40 Overhead: $50.00 Net profit: $3.40 Practice 1 Answer

14
Find the markup, overhead, and net profit. Selling price: $189.50 Cost: $123.56 Overhead: 25 percent of selling price Practice 2

15
Markup: $65.94 Overhead: $47.38 Net profit: $18.56 Practice 2 Answer

Similar presentations

OK

2011 FRANKLIN COMMUNITY SURVEY YOUTH RISK BEHAVIOR GRADES 9-12 STUDENTS=332.

2011 FRANKLIN COMMUNITY SURVEY YOUTH RISK BEHAVIOR GRADES 9-12 STUDENTS=332.

© 2017 SlidePlayer.com Inc.

All rights reserved.

Ads by Google

Ppt on acid-base titration indicator Ppt on save environment drawing Ppt on kinetic energy for class 9 Ppt online shopping system Ppt on nuclear power plant in india Ppt on bluetooth controlled robots Ppt on question tags test Ppt on different wild animals Ppt on asymptotic notation of algorithms and data Ppt on mechanical properties of dental materials