Brorsen, Inc., has just designed a new product with a target cost of $64. Brorsen requires...
Brorsen, Inc., has just designed a new product with a target cost of $64. Brorsen requires new product to have a profit of 20%. What is the target price for the new product?
| a. |
$12.80 |
|
| b. |
$53 |
|
| c. |
$64 |
|
| d. |
$320 |
|
| e. |
$80 |
Homework Answers
Solution.
Let the target price for the new product be $X
Brorsen requires new product to have a profit of 20%, hence profit = $0.2X
Given, Brorsen, Inc., has just designed a new product with a target cost of $64
Hence, equation is like this
Target Cost + Target Profit = Target Price
$64 +$0.2X = $X
$64 = 0.8X
X = $80
So, Option (e) is correct, $80.
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