you bought a cell-phone from through a distributor((distributor kept a profit margin of 30%), and a retailer for $150 (retailer kept a profit margin of 20%), and the cell-phone manufacturer wanted to make 10% profit, then the target cost for that cell-phone is:

$64.60

$75.60

$101.60

$105.60

Answer: ___

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]