Suppose a wholesaler buys new disposable phones from your factory for $30 per phone, and wants...
Suppose a wholesaler buys new disposable phones from your factory for $30 per phone, and wants to make a 30% margin on the selling price. How much must the wholesaler sell each phone?
Homework Answers
Let the selling price be P
Profit margin is 30% of the selling price which means the margin will be 0.3P
Margin is given by P - MC
0.3P = P - 30
P = 30/0.7 = 42.86
Therefore the selling price of the phone should be 42.86.
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