Find the selling price for a case of Newman's Own® special blend coffee based on sales margin
What is the selling price for a case of Newman's Own® special blend coffee if the retailer costs $4.47 and the sales margin is 20% of the selling price?
The selling price for a case of Newman's Own® special blend coffee can be calculated using the sales margin and cost provided.
Calculating Selling Price
Sales margin amount = Sales margin percent × Selling price ÷ 100
Substituting the value of sales margin percent (20%) into the equation, we get:
Sales margin amount = 20% × Selling price
Next, we can set up an equation to solve for the selling price using the given cost of $4.47:
Selling price - Sales margin amount = Cost
Substituting the values, we have:
Selling price - 20% × Selling price = $4.47
Simplifying the equation, we get:
0.8 × Selling price = $4.47
Dividing both sides by 0.8, we find:
Selling price = $4.47 ÷ 0.8 = $5.5875
Rounding the selling price to the nearest cent, we get $5.59. Therefore, the selling price for a case of Newman's Own® special blend coffee is $5.59.