Salid is selling a team jersey. The total variable cost is $16.50. The desired profit margin is 40 percent. Which is the correct price for an individual jersey?
To find the correct price for an individual jersey, we need to add the desired profit margin to the total variable cost.
The desired profit margin is 40% of the total variable cost, or 40/100 * $16.50 = $6.60.
Therefore, the correct price for an individual jersey would be $16.50 + $6.60 = $<<16.5+6.6=23.10>>23.10. Answer: \boxed{23.10}.
To find the correct price for an individual jersey, you'll need to consider the variable cost and the desired profit margin. Let's break it down step by step:
1. Start by calculating the desired profit margin. If the total variable cost is $16.50, you want a 40% profit margin. To find the profit margin, multiply the variable cost by the desired profit margin percentage:
Profit Margin = Total Variable Cost * Desired Profit Margin
= $16.50 * 0.40
= $6.60
2. Now add the desired profit margin to the total variable cost to get the total cost of an individual jersey:
Total Cost = Total Variable Cost + Desired Profit Margin
= $16.50 + $6.60
= $23.10
3. Finally, the correct price for an individual jersey would be the total cost:
Price for Individual Jersey = Total Cost
= $23.10
Therefore, the correct price for an individual jersey should be $23.10.
To calculate the correct price for an individual jersey, follow these steps:
Step 1: Calculate the desired profit margin.
The desired profit margin is 40 percent of the total variable cost.
Profit Margin = 40% of $16.50
Profit Margin = 0.40 * $16.50
Step 2: Calculate the profit from the desired profit margin.
Profit = Total Variable Cost + Profit Margin
Profit = $16.50 + (0.40 * $16.50)
Step 3: Calculate the total price for an individual jersey.
Total Price = Total Variable Cost + Profit
Total Price = $16.50 + Profit
Please note that we need the value of the profit margin (step 1) to calculate the total price for an individual jersey.