skcats5368 skcats5368

05-11-2019
Business

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TVLand sells home entertainment systems and also offers a complementary installation service. TVLand estimates that it incurs $40 in labor and materials to complete one installation, with an average of 25% profit based on cost. Using the expected cost plus margin approach, the stand-alone selling price of the installation service is:

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TomShelby TomShelby

05-11-2019

Answer:

The stand-alone selling of the installation service is 50 dollars

Explanation:

cost mark-up formula:

from the cost of the service we charge a percentage of this cost:

cost + %markup x cost = sales price

$40 + 25% of $40 = sales price

$40 + $10 = sales prie

sales price $50

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