Your boss asks you to calculate the selling price of a good such that the profit margin is 34%. The raw material of one good is $16. The manufacturing cost of the finished product is 145% of the raw material. On top of that, transportation and administration costs represent 3/5 of the total costs. a) What is the total cost? b) What is the selling price (for one good)?
Your boss asks you to calculate the selling price of a good such that the profit margin is 34%. The raw material of one good is $16. The manufacturing cost of the finished product is 145% of the raw material. On top of that, transportation and administration costs represent 3/5 of the total costs. a) What is the total cost? b) What is the selling price (for one good)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Your boss asks you to calculate the selling
price of a good such that the profit margin
is 34%.
The raw material of one good is $16. The
manufacturing cost of the finished product
is 145% of the raw material. On top of that,
transportation and administration costs
represent 3/5 of the total costs.
a) What is the total cost?
b) What is the selling price (for one good)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb6f7aa88-277f-4893-abd1-91d9b3603b2d%2F968036bd-2bb3-4400-90f7-6e216169942a%2F043klqp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your boss asks you to calculate the selling
price of a good such that the profit margin
is 34%.
The raw material of one good is $16. The
manufacturing cost of the finished product
is 145% of the raw material. On top of that,
transportation and administration costs
represent 3/5 of the total costs.
a) What is the total cost?
b) What is the selling price (for one good)?
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