A computer assembly firm purchases computers at $215 per computer. The operating expenses are 21% on cost and rate of markup is 55% on cost. What is the selling price of each computer? What is the operating profit per computer? Calculate the break-even selling price.
A computer assembly firm purchases computers at $215 per computer. The operating expenses are 21% on cost and rate of markup is 55% on cost. What is the selling price of each computer? What is the operating profit per computer? Calculate the break-even selling price.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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A computer assembly firm purchases computers at $215 per computer. The operating expenses are 21% on cost and rate of markup is 55% on cost. What is the selling price of each computer? What is the operating profit per computer? Calculate the break-even selling price.
A clothing merchant purchases a shipment of clothes for $38,000.00 with discounts of 11% and 5%. He sells it to a customer at a price which includes 22% profit on selling price and overhead expenses of 23% on selling price. How much did it cost him to purchase the container of clothes? What was the selling price of the container of clothes? Calculate the break-even selling price.
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