Blue Spruce Corp. sells equipment on September 30, 2019, for $17,600 cash. The equipment originally cost $72,700 and as of Janua
1 answer:
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Answer:
$8.00 per item
Explanation:
A company makes product and its 3% of products are faulty. There is no other quality inspection test which can identify the faulty products during the manufacturing process. The faulty products are only identified when the customer arrives to return it. The faulty product costs the company $200 each and company wants to make profit of $2.00 per item. It should charge price of $8.00
The calculation is as follows,
let selling price is
- (0.03 * 200) = 2.00
after rearranging the equation we get;
= 2 + 6
= 8