Question

A new product costs $.84 each to manufacture and $.52 each to market. if 50,000 will be sold, what must the price of each product be to provide a profit of 15 percent of the price?

Answer 1

The price of each product to provide a profit of 15 percent of the price will be $1.6

Given,Cost = $0.84 to manufacture

Cost = $0.52 to market

To get 15% of the price let the selling price be x

So,50000*(y-(0.84+0.52) ) = 50000*(.15)*y

y-1.36 = 0.15y

0.85y = 1.36

y = 1.36/0.85 = $1.6

Answer is $1.6

For businesses, profit is the positive financial gain remaining after all costs, taxes, and expenses have been deducted from total sales. A business owner will either apportion profits or reinvest them back into their company.

There are four levels of profit or profit margins: gross profit, operating profit, pre-tax profit, and net profit.

Learn more about profit here: https://brainly.com/question/19104371

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