Problema Solution
A business estimates its operating expenses at 35% and its net profit at 20%, based on the selling price. For what price must an item costing $457.89 be
sold to cover both the operating expenses and net profit?
Answer provided by our tutors
let
x = the selling price
457.89 + 0.35*457.89 = x(1 - 0.20)
1.35*457.89 = 0.80x
by solving we find:
x = $772.69
click here to see the step by step solution of the equation:
the selling price must be $772.69.