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17 March, 20:31

Brief exercise 8-1 ortega company manufactures computer hard drives. the market for hard drives is very competitive. the current market price for a computer hard drive is $45. ortega would like a profit of $10 per drive. what target cost ortega should set to accomplish this objective?

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  1. 17 March, 21:00
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    The profit that is gained by the company for selling a unit is equal to the difference between the revenue and total cost. In this item the revenue is given to be $45 and the profit is $10. To answer this item, we let x be the cost such that,

    45 - c = 10

    Simplifying,

    c = 45 - 10

    Further simplification will lead us to,

    c = 35

    Answer: $35.
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