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

To find the selling price, we first need to determine the sales margin amount. Sales margin amount is calculated as a percentage of the selling price. Given that the sales margin is 20% of the selling price, we can use the formula:
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.
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