Homework Answers
Answer:
1st case:
Targeted profit = 25% of investment
= 458599*25% = 114649.75
Number of units = 727
Profit per unit = 114649.75/727 = 157.70
Cost per unit = 1564
Revenue per unit = 1564+157.70 = 1721.70
Hence the profit per unit to be added to earn targeted revenue is 157.70 = 158.
2nd Case:
Targeted profit = 26% of investment
= 26%*493754
= 128376.04
Number of units =993
Profit per unit = 128376.04/993 = 129.28
Cost per unit = 1656
Renenue per unit = 1656+129.28 = 1785.28
Hence the Price per unit will be 1785.28
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