Question

You're instructed to prepare for a promotional candle sale you will use to test the popularity of the two redesigned candles. Wicks, labor, and other costs add about $1.60 to the cost of each candle. Suggest a retail price for each candle that will cover costs and allow for some profit. Explain how you determined these prices?

Answer 1

To determine the retail price for each candle, we need to consider the cost of the candle and also include some profit. The cost of the candle, including wicks, labor, and other costs, is $1.60. Let's assume we want a profit margin of 30%. To calculate the retail price, we can use the formula: Retail price = Cost + Profit. Given that the cost is $1.60 and we want a 30% profit margin, the profit would be $1.60 x 0.30 = $0.48. Adding the cost and profit, the retail price for each candle would be $1.60 + $0.48 = $2.08.

Step-by-step explanation:

To determine the retail price for each candle, we need to consider the cost of the candle and also include some profit. The cost of the candle, including wicks, labor, and other costs, is $1.60. Let's assume we want a profit margin of 30%.

To calculate the retail price, we can use the formula:

Retail price = Cost + Profit

Given that the cost is $1.60 and we want a 30% profit margin, the profit would be $1.60 x 0.30 = $0.48. Adding the cost and profit, the retail price for each candle would be $1.60 + $0.48 = $2.08.