QuestionMay 19, 2026

A business purchases an item for 9.17. They want to make a gross profit margin of 72% on the item. What do they need to price the item at? Selling Price= [?] Round to the nearest cent.

A business purchases an item for 9.17. They want to make a gross profit margin of 72% on the item. What do they need to price the item at? Selling Price= [?] Round to the nearest cent.
A business purchases an item for 9.17.
They want to make a gross profit margin
of 72%  on the item. What do they need
to price the item at?
Selling Price= [?]
Round to the nearest cent.

Solution
4.0(273 votes)

Answer

32.75 Explanation 1. Understand gross profit margin Gross profit margin = \frac{\text{Selling Price} - \text{Cost}}{\text{Selling Price}}. Given as 0.72. 2. Set up equation 0.72 = \frac{SP - 9.17}{SP}. 3. Solve for SP 0.72SP = SP - 9.17 SP - 0.72SP = 9.17 0.28SP = 9.17 SP = \frac{9.17}{0.28} = 32.75.

Explanation

1. Understand gross profit margin <br /> Gross profit margin = $\frac{\text{Selling Price} - \text{Cost}}{\text{Selling Price}}$. Given as $0.72$. <br /><br />2. Set up equation <br /> $0.72 = \frac{SP - 9.17}{SP}$. <br /><br />3. Solve for SP <br /> $0.72SP = SP - 9.17$ <br /> $SP - 0.72SP = 9.17$ <br /> $0.28SP = 9.17$ <br /> $SP = \frac{9.17}{0.28} = 32.75$.
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