SOLUTION: The owner of a quilting shop is calculating the retail price to charge for a new sewing machine. The manufacturer charges her $450 for each machine and she figures $200 of overhead

Question 325491: The owner of a quilting shop is calculating the retail price to charge for a new sewing machine. The manufacturer charges her $450 for each machine and she figures $200 of overhead and sales costs for each unit. She wants to earn a 20 percent profit on each sewing machine sold. What price should the machine carry?

Answer by info@email-tutors.com(9) (Show Source): You can put this solution on YOUR website!
From the information that you provided, we are assumming that you desire a 20 percent profit based on the manufacturers selling price. Here goes:
Each sewing machine carries an added cost of 200 dollars.
The base price of each machine is 450 dollars + profit + overhead.
20 percent of 450 is 90 dollars
450 + 90 dollars is 540 dollars
540 dollars + 200 dollars overhead results in a base price of 740 dollars for each machine!
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