Question

The cost of manufacturing a good is $60,000. You want to make a profit margin of 30%. What price do you sell the good at?

Answer 1

The manufacturing cost is given as 60,000 dollar.

The profit margin is 30 percent.

To determine the revenue cost use the profit margin ,

Substitute the values in the formula,

`(30)/(100)=(R-60,000)/(R)^{}`
`0.3R=R-60,000`
`60,000=R-0.3R`
`R=(60,000)/(0.7)=85714.28\text{dollar}`

Hence the price at which the good sell is 85714.28 dollar.