Answer:
sales price 60.06
Step-by-step explanation:
The investment is 530,000
We need a return of 20%
530,000 x 20% = 106,000
We now need to determinate which sales price gives a net income of 106,000
16,500 x (sales price - 50) - adminitrative expense 60,000 = 106,000
16,500 sales price - 50 x 16,500 = 106,000+ 60,000
16,500 sales price = 825,000 + 106,000+ 60,000
sales price = 991,000/16,500 = 55,2121 = 60.06
We can check the answer by bulding an income statment
sales revenue 16,500 x 60.06 990,990
COGS 16,500 x 50 (825,000)
gross profit 165,990
S&A expense (60,000)
net income 105,990