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?
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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