Question

~PLEASE HELP ASAP OFFERING 20 POINTS PLEASE ANSWER ALL QUESTIONS~

Answer 1

1) Johnson's profit is

... net profit = selling price - costs = $155 - 35.00 - 39.17 - 36.43 = $44.40

His net earnings per hour are then

... earnings/hours = $44.40 / (4.5 h) = $9.87/h

2) net profit = selling price - overhead - cost

... net profit = selling price - 0.45 × selling price - cost . . . . substitute for overhead

... net profit = 0.55 × selling price - cost

Given that overhead = 0.45 × selling price, we can find selling price by dividing by 0.45:

... selling price = overhead/0.45

Using this in the profit equation, we have

... net profit = 0.55×(overhead/0.45) - cost

... = (0.55/0.45) × $65.34 - 49.32 . . . . . . substitute given numbers

... net profit = $30.54