Homework Answers
Calaculation of price at which the Albert's appliances should advertise the microwave:
The correct option is
- e) $425
Explanation:
Price of the microwave
= Per unit cost of the microwave + operating expense + desired operating profit per unit
= $250 + 40% of per unit cost + 30% of per unit cost
= $250 + ($250×40%) + ($250×30%)
= $250 + $100 + $75
= $425
Therefore,
They can advertise the microwave at price of $425
_______×________
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