Alpha computing is importing mother boards at a unit cost of $178. Alpha estimates that operating expenses per unit are 35% of cost. What should the selling price be if the desired operating profit per unit is 30% of the cost?

Question

Quizplus · Accepted Answer

To find the selling price, first calculate the operating expenses and desired profit per unit. Operating expenses are 35% of $178, which is $62.30. Desired profit is 30% of $178, which is $53.40. Add these to the cost: $178 + $62.30 + $53.40 = $293.70.

Alpha Computing Is Importing Mother Boards at a Unit Cost