HP 10bII - Additional Examples; Setting a Sales Price

Additional Examples
Business Applications
Setting a Sales Price
One method for setting the per unit sales price is to determine the cost of
production per unit, and then multiply by the desired rate of return. For
this method to be accurate, you must identify all costs associated with the
product.
The following equation calculates unit price based on total cost and rate
of return:
PRICE = TOTAL COST + NUMBER OF UNITS x (1 + (%RTN + 100))
Example. To produce 2,000 units, your cost is $40,000. You want a 20%
rate of return. What price should you charge per unit?
Keys: Display: Description:
200009 40,000.00 Enters cost.
@@@@@® 20.00 Calculates unit cost.
CXOCDGCXOQX9G) 24.00 Calculates unit sale:
00005
price.
:
8: Additional Examples 95