- A used car dealer had sales of $3,588,034 in 2006. The cars they sold cost them $2,803,111. Calculate the dealer’s
gross profi t margin for 2006. - StuffCo Stores uses a 18% gross profi t margin for the small home appliances. A toaster is priced at $17.95. Find the
gross profi t and the cost for this toaster. - A consignment shop has a 60% gross profi t margin. A children’s sweatshirt is offered for sale for $3.75. Find the shop’s
gross profi t for this sweatshirt and also the shop’s cost. - International Consolidated Homestyle Industries reports that its gross profi t margin was 7.39% last year, on sales
totaling $85,873,002. Calculate the company’s gross profi ts for the year.
B. Net Profi t Margin and Proportionate Allocation
- A used car dealer had sales of $3,588,034 in 2006. The cars the dealer sold cost it $2,803,111. Expenses totaled
$518,046. Calculate the dealer’s net profi t margin for 2006. - Ludd’s Electronics had sales totaling $1,547,919 last year. The cost of the goods sold was $993,225. Expenses totaled
$385,997. Find the net profi t margin. - In 2007, Eddie’s Bike Shop had sales totaling $835,001. The cost of the goods sold was $624,023 and expenses
totaled $287,002. Calculate the shop’s (a) gross profi t margin and (b) net profi t margin for 2007. - OldeTyme Digital Sales had expenses of $87,559 in 2006, and sales totaled $204,013. The cost of the items sold
totaled $177,402. Find the 2006 (a) gross profi t margin and (b) net profi t margin. - In 2007 StuffCo Stores had an overall gross profi t margin of 23.9%, and expenses amounted to 17.4% of sales. What
was the net profi t margin? - Canalside Tapas had a gross profi t margin of 37.9% last year, and expenses were 42.9%. Determine the net profi t
margin. - In 2006, Eddie’s Bike Shop’s expenses were 31.2% of sales. Assuming that the management allocates expenses in
proportion to sales, what would be the expenses attributed to a bike that sold for $439.95? - Ludd’s Electronics had sales totaling $1,547,919 last year. Expenses totaled $385,997. Assuming that
management allocates overhead expenses in proportion to sales, calculate the overhead for a DVD player that
sold for $89.99.
348 Chapter 8 Mathematics of Pricing