[Anonymous]

Based on the potential sales of 500 units per year, a new product has estimated traceable cost of $990,000. What is the target price to obtain a 15% profit margin on sales?

Answer: (990000/.85)/500 = 2,329

Why isn’t it: (99000*1.15)/500 = 2,227

Why isn’t the sale value higher than the cost value? As it stand in this answer (BECKER) the cost value is higher than the sale value.

[h0wdyus]

S – 990,000 = 15% of S

S -990000 = .15 S

.85 S = 990000

S = 990000/.85 total sales .. divide this by 500 units you get per unit price.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Anonymous]

@ h0wdyus thanks for your reply and assistance.

[Author]

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