Answer: $3
Step-by-step explanation: I confirmed the diagnostic, and it was accurate
Begin by determining the overhead costs. The selling price was $240. To calculate 20% of 240, multiply 240 by 0.20, yielding 48. Consequently, the overhead expenses total $48. To figure out the profit, subtract total expenses from the selling price. Mr. Lippman's selling price was $240, he paid $160 for the dryer, and incurred $48 in overhead expenses. Thus, 240 - 160 - 48 equals 32. Therefore, the profit is $32. To determine the profit rate, divide the profit by the total expenses. 32 / (240 + 160) results in 0.08. Hence, the profit rate is 8%.
