Thando traders buys and sells computer. She pays R4000 Rent for a month. She pays wages to her assistant R6000 per month. On average he sells 50 computers every month. She buys for R400 each. Thando would like to make a Net Profit of 20%
Calculate what her Selling Price would be
First, let's calculate Thando's total monthly expenses:
Rent: R4000
Wages: R6000
Cost of buying 50 computers: 50 computers * R400 each = R20000
Total expenses = R4000 + R6000 + R20000 = R30000
Thando wants to make a net profit of 20%, so her total desired revenue would be:
Total expenses + 20% profit = R30000 + 0.20 * R30000 = R36000
Since Thando sells 50 computers per month, her selling price for each computer should be:
Selling price = Total desired revenue / number of computers sold
Selling price = R36000 / 50 = R720
Therefore, Thando's selling price for each computer should be R720 in order to make a net profit of 20%.