Question
Irisen Company has designed a caller ID machine with a large screen that can be seen...
Irisen Company has designed a caller ID machine with a large screen that can be seen easily from across the room. The sales department believes that this product can be sold for S40 each. Irisen requires that all new products yield 10% profit. What is the target cost of the new product? O $41 S28 O $14 S36 $25
Answers
D.$36.
given the sale price is $40.
and the target yield is 10%.
when the yield is 10%
sale price = cost + (yield * cost)
=>$40 = cost + (10% * cost)
=>cost = $40 / 1.10
=>cost = $36.36
=>$36.......(rounded to nearest dollar).
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