A). Price – Total Cost = Profit
B). Profit Margin = Profit OR Price - l
Total Cost Total Cost
C) Total Revenue = ( units sold)(price/unit)
D)) Total Cost = (units produced)(cost/unit)
E) Breakeven: Total Revenue = Total Cost
1). Use the figures below for problems:
Costs:
Labor ………. 15
Materials …… 12.75
Utilities …….. 5.25
Transportation.. 18
To insure a profit of at least 25% of costs what must the minimum price be?