Respuesta :
Answer:
The target cost is [tex] \$ 75.60 [/tex]
Step-by-step explanation:
From the question we are told that
The distributors profit margin is 30%
The retailers price of the phone is $150
The retailers profit margin is 20%
The profit to be made by manufacture is 10%
Generally profit margin is mathematically represented as
[tex]PM = \frac{NI}{NS}[/tex]
Here NI is Net income
NS is Net sales
Generally the profit of the retailer from the price of the phone is
[tex]PR = \frac{20}{100} * 150[/tex]
=> [tex]PR = \$ 30[/tex]
Generally the cost price for the retailer which is also the selling price of the distributor is
[tex]CR = 150 - PR[/tex]
=> [tex]CR = 150 - 30[/tex]
=> [tex]CR = $120[/tex]
Generally the profit for the distributor is
[tex]PD = \frac{30}{100} * 120[/tex]
[tex]PD = \$ 36[/tex]
Generally the cost price for the distributor which is also the selling price the manufacturer is
[tex]CD = CR - PD[/tex]
=> [tex]CD = 120 - 36[/tex]
=> [tex]CD = $ 84[/tex]
Generally the profit for the manufacturer is
[tex]PM = \frac{10}{100} * CD[/tex]
=> [tex]PM = \frac{10}{100} * 84[/tex]
=> [tex]PM = \$ 8.4[/tex]
Generally the target cost is mathematically represented as
[tex]T = CD - PM[/tex]
=> [tex]T = 84 - 8.4[/tex]
=> [tex] \$ 75.60 [/tex]