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Math Help - Gross Profit Margin Problem

  1. #1
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    Gross Profit Margin Problem

    I need some help with the following problem. I have calculated that a company has $2,000,000 in expenses and they sell 50,000 products. The company is wanting a 15% gross profit margin and there are also 3% collection expenses (3% of total sales). I am trying to establish what is the cost of each product?
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  2. #2
    MHF Contributor
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    HINT (p = price per product):
    50000p - .03(50000p) = 2000000 + 300000

    OK?
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  3. #3
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    That works fine for me!! Thanks for the help, I appreciate it!
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