Question

Target purchases TIGA table-tennis tables at a cost of $180 each. If the company’s operating expenses are 16% of cost, and a net profit of 7% of cost is desired, find the selling price of one table-tennis table

Answer 1

First, find what is 16% of 180 and 7% of 180 equal to, by multiplyig 180 times 16/100 and 180 times 7/100:

$\begin{gathered} 180\times\frac{16}{100}=28.8 \\ \\ 180\times\frac{7}{100}=12.6 \end{gathered}$

Then, the company's operating expenses are equal to $28.8 for each tennis table, and a profit of $12.6 for ea