Your boss asks you to calculate the selling price of a good such that the profit margin is 34%. The raw material of one good is $16. The manufacturing cost of the finished product is 145% of the raw material. On top of that, transportation and administration costs represent 3/5 of the total costs. a) What is the total cost? b) What is the selling price (for one good)?

Your boss asks you to calculate the selling price of a good such that the profit margin is 34%. The raw material of one good is $16. The manufacturing cost of the finished product is 145% of the raw material. On top of that, transportation and administration costs represent 3/5 of the total costs. a) What is the total cost? b) What is the selling price (for one good)?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter20: The Problem Of Adverse Selection Moral Hazard

Section: Chapter Questions

Problem 20.3IP

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