Ask Question
20 September, 04:09

Victor's detailing customers would be willing to pay $57 per detail. the company requires a 40% profit on each job. the average job would cost $30. victor's detailing uses target-costing. what is the price they should quote a new customer?

+5
Answers (1)
  1. 20 September, 07:09
    0
    Between $42 and $57

    Explanation:

    The first step is to calculate the profit markup on the cost. Always remember that in a profit markup system, cost is always deemed 100%.

    So

    Profit mark-up = Cost * Mark-up percentage

    Profit Mark-up = $30 * 40% = $12

    The least Price of the job that the firm will charge is $42 ($30 Cost + $12 Profit Mark-up) and the highest charge for the job will be $57. So the company must charge between $42 to $57.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Victor's detailing customers would be willing to pay $57 per detail. the company requires a 40% profit on each job. the average job would ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers