Mary Z.

asked • 08/30/14

? list price for a net profit

Your company decides to market a new product and intends to offer a 30% discount to its retailers. How much should the list price be in order to have a net profit of $145 on the new product?

Mary Z.

My book deals with M & M candies, both milk chocolate and peanut butter candies and their relationship between them or number of ounces in a bag compare to a different number of ounces in a larger or smaller bag. There are no examples of problems dealing with for example, " You bought 4000 parts. You know that from experience that 23% are defective. How many more must be purchased to obtain 4000 good ones and this explaining the formula:   R x B = P. I would understand the chapter better. I like and need a variety of different problems to show me how R x N = P. I hope I can ask you a homework problem and you can give me the solution to a word problem
Usually I can understand the question once I see the solution and relate it to the formula ehrm necessary. I do not need lessons just an occasional solution to the problem. I hope that it does not cost any money for a solution. Thank you for listening to my long-winded comment. Thank you, Mary Ziegler.
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08/31/14

Mary Z.

By the way I amb
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08/31/14

Mary Z.

Oh, by the way, I am not Mary from Philadelphia. I am Mary from Reading, PA.
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08/31/14

1 Expert Answer

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Pritesh S. answered • 08/30/14

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From what is only given...
X-0.3X=145, where X is the list price of new product before 30% discount.
0.7X=145
X=207.14
∴ Product list price before discount ≈ $208
CHECK: 208-(208*0.3)≈$145
 
Hope this helps!
 
NOTE:
I am not a business merchandise/marketing/pricing professional, but I would imagine a business could charge a different price (higher or lower) and still end up with desired profit... sometimes the discount is volume tired or there are other contingencies.  Also, the situation above has not talked about many other costs involved when dealing with a retailer (taxation, logistics, shelf display, inventory, etc.)...which complicate the contract negotiations.  Apologies in advance if I misunderstood your question.  :-)
 
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Mary Z.

This was very helpful. I believe I understand it better. Rate x Base = Portion. The book we 
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08/31/14

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