Sheridan Service sells oil at a markup of 42% of the selling price. Sheridan paid $0.81 per litre of oil. (a) What is the selling price per litre? (b) What is the rate of markup based on cost?
Sheridan Service sells oil at a markup of 42% of the selling price. Sheridan paid $0.81 per litre of oil. (a) What is the selling price per litre? (b) What is the rate of markup based on cost?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![**Text Transcription:**
Sheridan Service sells oil at a markup of 42% of the selling price. Sheridan paid $0.81 per litre of oil.
(a) What is the selling price per litre?
(b) What is the rate of markup based on cost?
**Explanation:**
The problem involves calculating the selling price and markup rate in a business context. Here's how you approach each part:
- **(a) Selling Price per Litre:**
- To find the selling price, let \( S \) be the selling price.
- Since the markup is 42% of \( S \), you have:
\[ \text{Cost} = S - 0.42S = 0.81 \]
\[ 0.58S = 0.81 \]
\[ S = \frac{0.81}{0.58} \]
- **(b) Rate of Markup Based on Cost:**
- With the selling price known from part (a), calculate the markup:
\[ \text{Markup} = S - 0.81 \]
- Then, the rate of markup based on the cost is:
\[ \text{Rate of Markup} = \left(\frac{\text{Markup}}{0.81}\right) \times 100\% \]
Use these formulas to derive the solutions for the problem provided.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02baf1d3-0eae-45b3-ae51-b0c2a0263478%2Ff4471e65-207c-42db-9e30-963a245f1569%2F96748fd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Text Transcription:**
Sheridan Service sells oil at a markup of 42% of the selling price. Sheridan paid $0.81 per litre of oil.
(a) What is the selling price per litre?
(b) What is the rate of markup based on cost?
**Explanation:**
The problem involves calculating the selling price and markup rate in a business context. Here's how you approach each part:
- **(a) Selling Price per Litre:**
- To find the selling price, let \( S \) be the selling price.
- Since the markup is 42% of \( S \), you have:
\[ \text{Cost} = S - 0.42S = 0.81 \]
\[ 0.58S = 0.81 \]
\[ S = \frac{0.81}{0.58} \]
- **(b) Rate of Markup Based on Cost:**
- With the selling price known from part (a), calculate the markup:
\[ \text{Markup} = S - 0.81 \]
- Then, the rate of markup based on the cost is:
\[ \text{Rate of Markup} = \left(\frac{\text{Markup}}{0.81}\right) \times 100\% \]
Use these formulas to derive the solutions for the problem provided.
Expert Solution
Step 1: Introduce of markup price
Selling oil at markup of 42% of the selling price
Paid price = 0.81$
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