On 3 May 2023. Mira bought two laser printers which is listed for RM500 each and be offered
15% trade discount and cash discount terms of 8/10, n/30. She then sells the unit with a gross profit
32% of the selling price. The operating expenses are 8% of the selling price. Calculate the:
i. amount paid by Mira on 13 May 2023 (5 marks)
ii. selling price each unit (4 marks)
iii. breakeven price each unit (4 marks)
iv. maximum markdown percent that could be given without incurring any loss. (4 marks)
v. net profit or loss if the retail price each laser printer is RM490
i. Amount paid by Mira on 13 May 2023:
Total cost of two laser printers = 2 x RM500 = RM1000
Trade discount = 15% of RM1000 = 0.15 x RM1000 = RM150
Net amount to be paid after trade discount = RM1000 - RM150 = RM850
Cash discount = 8% of RM850 = 0.08 x RM850 = RM68
Amount paid by Mira on 13 May 2023 = RM850 - RM68 = RM782
ii. Selling price each unit:
Gross profit percentage = 32%
Let the selling price of each unit be x.
Cost price of each unit = RM500
Gross profit = Selling price - Cost price
32% of x = x - RM500
0.32x = x - RM500
0.68x = RM500
x = RM500 / 0.68 = RM735.29
iii. Breakeven price each unit:
Total operating expenses = 8% of selling price
Breakeven price = Cost price + Total operating expenses
Breakeven price = RM500 + 0.08 x RM735.29
Breakeven price = RM500 + RM58.83 = RM558.83
iv. Maximum markdown percent that could be given without incurring any loss:
Let the markdown percent be y%.
Selling price after markdown = Selling price - (y% of Selling price)
Selling price - (y/100)Selling price = Cost price + Total operating expenses
(1 - y/100)Selling price = RM500 + 0.08Selling price
0.92Selling price = RM500 + 0.08Selling price
0.84Selling price = RM500
Selling price = RM595.24
Markdown percent = (735.29 - 595.24) / 735.29 * 100 = 19.05%
v. Net profit or loss if the retail price each laser printer is RM490:
Selling price = RM490
Gross profit = Selling price - Cost price = RM490 - RM500 = -RM10 (loss)
Operating expenses = 8% of RM490 = RM39.20
Net profit/loss = Gross profit - Operating expenses = -RM10 - RM39.20 = -RM49.20 (net loss)