A distributor purchases a machine for $185,000, less discounts of 5% and 3%. It then sells the machine to a client at a

price, which includes 35% profit on selling price and overhead expenses of 20% on selling price.

a. How much did it cost to purchase the machine?

b. What was the selling price of the machine?

Use Formulas:

Selling Price: S=C+M

Selling Price: S=C+E+P

Amount of Markup: M=E+P

Rate of Markup on Cost= M/C x 100%

Rate of Markup on Selling Price= M/S x 100%

Break-Even Price: BE=C+E