Flasket,Inc.manufactures water bottles for children.Similar water bottles are available in the market for $14.Flasket desires a 30% net profit margin.Flasket's target cost is ________.(Round your answer to the nearest cent.)
A)$9.80
B)$18.20
C)$14.00
D)$4.20

Question

Quizplus · Accepted Answer

To achieve a 30% net profit margin on a selling price of $14, Flasket's target cost should be 70% of $14. This is calculated as $14 * (1 - 0.30) = $9.80.