ShmoopTube

00:03

Here's a shmoopy question for you...

00:05

Bert is the owner of an inconvenience store called One-Three.

00:10

It's just like a convenience store, only the shelves are too high for anyone to reach...

00:14

...and they're only open for three hours, one day a week.

00:17

Bert stocks his shelves with items bought at wholesale prices,

00:21

and then charges his... very few customers... a premium above wholesale to turn a big, fat profit.

00:27

If Bert purchased $15,000 in merchandise at wholesale prices,

00:32

how much would he need to make in total sales to earn a 12% profit?

00:37

Here are the potential answers...

00:42

OK, what are we being asked here?

00:45

This is a little tricky... we don't just multiply 15,000 by 0.12 and be done with it.

00:50

Rather, we want to know his take OVER AND ABOVE the cost of the merchandise,

00:54

so we multiply 15,000 by 1.12 to get 16,800.

01:02

If the owner sells his $15,000 in merchandise for $16,800, he has made a 12% profit.

01:10

There you go.

01:10

So our answer is B. Case closed. Just like Bert's store.

Full Transcript