64 Investment Analysis
If manufacturing expenses increase to $3.25, what is the effect on net profit?
12c platinum / 12C
RPN Keystrokes
12c platinum
ALG Keystrokes
Display Comments
3.25?3 3.25?3
3.25
Manufacturing cost.
g(012tt g(012tt
58.26
g(043t g(039t
13.66
Net profit reduced to 13.66%
If the manufacturing cost is maintained at $3.25, how high could the overhead (operating
expense) be before the product begins to lose money?
12c platinum / 12C
RPN Keystrokes
12c platinum
ALG Keystrokes
Display Comments
0?5 0?5
0.00
g(012tt g(012tt
58.26
g(038t g(031t
58.26
Maximum operating expense
(%).
At 32% operating expense and $3.25 manufacturing cost, what should the list price be to
generate 20% net profit?
12c platinum / 12C
RPN Keystrokes
12c platinum
ALG Keystrokes
Display Comments
20?5 20?5
20.00
:3tz :3t~z~³
11.00
1g(014tz 1g(014t~z~³
16.93
List price ($).
What reduction in manufacturing cost would achieve the same result without necessitating
an increase in list price above $11.98?
12c platinum / 12C
RPN Keystrokes
12c platinum
ALG Keystrokes
Display Comments
g(013t g(013t
7.79
g(001t§ g(001t§~³
2.30
Manufacturing cost ($).