HP 12C - Page 64

63
b. Press 12 43 .
Example: What is the net return on an item that is sold for $11.98,
discounted through distribution an average of 35% and has a
manufacturing cost of $2.50? The standard company operating expense
is 32% of net shipping (sales) price and tax rate is 48%.
If manufacturing expenses increase to $3.25, what is the effect on net
profit?
If the manufacturing cost is maintained at $3.25, how high could the
overhead (operating expense) be before the product begins to lose
money?
At 32% operating expense and $3.25 manufacturing cost, what should the
list price be to generate 20% net profit?
Keystrokes Display
CLEAR
100 0
100.00
1 .48 6
0.52 48% tax rate.
11.98 1
11.98 List price ($).
35 2
35.00 Discount (%).
2.50 3
2.50 Manufacturing cost ($).
32 4
32.00 Operating expenses (%).
12
67.90
43
18.67 Net profit (%).
3.25 3
3.25 Manufacturing cost.
12
58.26
43
13.66 Net profit reduced to 13.66%
0 5
0.00
12
58.26
38
58.26 Maximum operating expense (%).
20 5
20.00
3
11.00
1 14
16.93 List price ($).