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A company buys an item at a cost of $15.70 each. If the company's operating expenses are 17% of cost, and a net profit of 7% of cost is desired, find the selling price of one item.

User Offex
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1 Answer

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The cost of the item is = $15.70

The company operating expenses = 17% of the cost

Net profit = 7 % of cost

The company operating expenses = 17% of cost of the item

The cost of the item = $15.70

Operating expenses = 17% x 15.70

Operating expenses = 17/100 x 15.70

Operating expenses = 0.17 x 15.70

Operating expenses = $ 2.669

The net profit =7% of cost

Net profit 7/100 x 15.70

Net profit = 0.07 x 15.70

Net profit= $1.099

Profit = cost - selling price

Profit = $1.099

Total cost = cost of the item + operating expenses

Total cost = $15.70 + $2.669

Total cost = $18.369

1.099 = 18.369 - selling price

Isolate selling price

1.099 - 18. 369 = - selling price

- $17.27 =

User Frank Osterfeld
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