selling price of a 15$ item with 40% and gross profit

Question

If you purchase an item for your resell inventory for $15, and want to achieve a 40% gross profit, what is the selling price?

Answer 1

Gross profit = selling price - purchase price

A 40% gross profit means that selling price is 40% more than purchase price

 

(selling price - purchase price)/selling price *100 = 40

(selling price - 15) / selling price * 100 = 40

If selling price = x then

(x-15) *100/x = 40

(x-15) * 100  = 40x

x-15 = 0.4x

x = 21

Selling price for a 40% gross profit is $ 21