Final answer:
The question is about calculating the selling price of a product with a desired profit percentage. To calculate the selling price, multiply the cost of $400.00 by the desired profit percentage of 60% to find the profit amount, which is $240.00. Add this to the original cost to get the selling price of $640.00.
Step-by-step explanation:
The subject of this question is Business and the grade level is College.
To determine the selling price of a product with a desired profit percentage, you can use the formula:
Selling Price = Cost + (Cost x Desired Profit Percentage)
In this case, the cost of the handbag is $400.00 and the desired profit is 60%. So the selling price would be:
Selling Price = $400 + ($400 x 0.60) = $400 + $240 = $640
To calculate the selling price, multiply the cost of $400.00 by the desired profit percentage of 60% to find the profit amount, which is $240.00. Add this to the original cost to get the selling price of $640.00.
The student's question pertains to determining the selling price of a product based on a desired profit margin. In this case, the cost of producing handbags is $400.00 and the desired profit is 60%. To calculate the selling price, one must first calculate the amount of profit by taking 60% of the cost. This is done by multiplying $400.00 by 0.60, resulting in a profit of $240.00. The selling price is then found by adding this profit to the original cost, giving us a selling price of $400.00 + $240.00 = $640.00.