A company believes it can sell 8,000 units of its proposed new garage door opener at a price of $100 each.If the company desires to make a profit of 30% of selling price on the garage door opener, what is the target cost per opener?
A)$130
B)$110
C)$70
D)$30

Question

Quizplus · Accepted Answer

The desired profit is 30% of the selling price, which is $100. Therefore, the target cost per opener should be 100 - (100 * 0.30) = $70 to achieve a 30% profit margin.

A Company Believes It Can Sell 8,000 Units of Its