Cher opened a bakery that manufactures packaged Cupcakes in LA. Using the Plantwide allocation system, they have determined that the cost per cupcake is $1.30. Since operating expenses in California are high, Cher wants a gross profit percentage of 75%. For what price should they sell their product? Round answer to the nearest penny (e.g. x.xx).
sales - cost of goods sold= GP
SALES-$1.30=75% OF SALE
SALES-.75SALES=$1.30
.25 SALES=$1.30
SALES=1.30/.25=$5.20
Pprice at which product must be sold+= $ 5.20
Cher opened a bakery that manufactures packaged Cupcakes in LA. Using the Plantwide allocation system, they...
Cher opened a bakery that manufactures packaged Cupcakes in LA. Using the Plantwide allocation system, they have determined that the cost per cupcake is $1.30. Since operating expenses in California are high, Cher wants a gross profit percentage of 75%. For what price should they sell their product? Round answer to the nearest penny (e.g. x.xx).