Paradise Inc.estimates that it can sell 50,000 of its calculators for $50 each.Assuming a total target profit of $1,000,000,how much is the target cost per calculator?

Question

Quizplus · Accepted Answer

First, we need to calculate the total revenue from selling 50,000 calculators for $50 each:

Total revenue = 50,000 x $50 = $2,500,000

Next, we need to subtract the target profit of $1,000,000 to find the target cost:

Target cost = Total revenue - Target profit
Target cost = $2,500,000 - $1,000,000
Target cost = $1,500,000

Finally, we can calculate the target cost per calculator:

Target cost per calculator = Target cost / Number of calculators
Target cost per calculator = $1,500,000 / 50,000
Target cost per calculator = $30.00

Therefore, the correct answer is B, $30.00.