I have to estimate a target cost for a new widget. Here is the scenario.
customers are willing to pay $100 for a new widget and 50,000 units could be sold at this price. The current cost to produce it is $75 For a 25% return on sales...what is the target cost of the new widget?
It seems so simple, but i'm confused...my book offers no related scenario..
TIA
-S
it is a vocabulary problem as well as a mathematical problem.
25% Return on sales, huhlets see 1/4 ( same as 25%) return on sales price, mark up cost by
1/3 example (subtract one from the denominator , convert to decimals, subtract from one and divide your sales price by that number) 75.00 / .666667 = 112.50 (rounded tio 2 decimal places)cost is the price to c>I have to estimate a target cost for a new widget. Here is the
SAP Basis Administration Outsourcing
COMPSOFT TECHNOLOGY Remote Basis Administration supplements your internal Basis staff with expert Basis consultants, as needed for a simple hourly rate. You only pay for the hours you use and no long-term obligation is required.
The philosophy behind Compsoft Technology can be summarized in 4 key points:
We work with you, but your project always remains under your control We work fast, delivering quick, clean SAP solutions We're pro-active, focusing in equal measure on optimizing current system performance and determining future developments likely to benefit your business We're professional and personable, committed to building successful relationships and delivering a high level of customer care Onsite-Offshore Delivery Model
We offer a unique methodology, where you have the flexibility to have a total control of the project throughout the Project Life Cycle and leverage the cost advantage of out sourcing.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required