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? $16.50 divided by left parenthesis 1 minus 0.40 right parenthesis equals $27.50 Image with alt text: $16.50 divided by left parenthesis 1 plus 0.40 right parenthesis equals $27.50 Image with alt text: $16.50 divided by left parenthesis 1 times 0.40 right parenthesis equals $41.25
The correct price for an individual jersey can be calculated by dividing the total variable cost by (1 minus the desired profit margin). In this case, the total variable cost is $16.50 and the desired profit margin is 40 percent.
So the correct price for an individual jersey would be:
$16.50 divided by (1 - 0.40) = $16.50 divided by 0.60 = $27.50
Therefore, the correct price for an individual jersey is $27.50.
The correct price for an individual jersey would be:
$16.50 divided by (1 - 0.40) = $16.50 divided by 0.60 = $27.50
The correct price for an individual jersey can be found by adding the desired profit margin to the total variable cost.
To calculate the desired profit margin, we use the formula: Total Cost = Variable Cost + Desired Profit.
In this case, the desired profit margin is 40 percent. To convert this percentage to a decimal, we divide it by 100. So, 40 percent becomes 0.40.
To find the correct price, we add the desired profit margin to the total variable cost:
Total Cost = $16.50 + ($16.50 * 0.40) = $16.50 + $6.60 = $23.10
Therefore, the correct price for an individual jersey is $23.10.
None of the given options match the correct answer.