Asked by Alysha Brown on Jun 30, 2024
Verified
M Studios is ordering a new type of camera, which costs $315. M Studios allows 35% of cost for operating expenses and 20% of cost for profit. What selling price should M Studios advertise the camera at?
Operating Expenses
Costs associated with running the day-to-day operations of a business, excluding the cost of goods sold, typically including things like salaries, rent, and utilities.
Profit
The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.
Selling Price
The amount at which an item or service is sold to the customer.
- Ascertain the selling price required to realize the specified profit margins.
- Acquire knowledge on the implications of business expenditures on pricing decisions and financial success.
Verified Answer
YA
Learning Objectives
- Ascertain the selling price required to realize the specified profit margins.
- Acquire knowledge on the implications of business expenditures on pricing decisions and financial success.