Question

Chris and Lisa Handy started selling T-shirts out of the trunk of their car at craft shows around the southern United States 4 years ago. Their business has grown dramatically. Other than paying taxes on their earnings, they have not done any formal business planning. In fact, their business has been so popular with crafters that they have started accepting online orders. They are now at a point where they are considering quitting their day jobs and focusing on the T-shirt business full-time. Chris and Lisa need some help thinking about their business. Use the information from this chapter to answer the following questions. Two years ago, Chris and Lisa purchased an original oil painting for $40,200. When they bought the painting, Lisa was sure that the piece would soon become collectible. Now that their business is doing well, they want to expand. Rather than take out a loan, Tom has suggested selling the painting. If they sell the painting at auction for $45,800 and pay a 15% seller's fee, how much will they make on the sale? Show the actual amount and the percentage gain or loss. (Round percentage gain/loss to 2 decimal places, e.g. 52.75.) The amount of on sale will be $ The percentage o on sale will be gain loss eTexthonk an

Answer 1

Selling price of painting $45800 less: Seller's fee eisil 6870 38930 ? purchase price 40200 Loss on Sales 1270 loss percentage = 1250 -X100 40200 - 3.18