A crafter wants to make 20% profit on the items he makes. if the cost of materials is $1.20, what should the items sell for to make a 20% profit?

Question

Mathematics

Townsend

9 January, 02:40

A crafter wants to make 20% profit on the items he makes. if the cost of materials is $1.20, what should the items sell for to make a 20% profit?

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Olivia Palmer · Answer 1

The selling price of the object that the crafter made in order to make the desired profit is calculated or solved by multiplying the cost of materials by the total percentage. That is,

Selling price = (Cost of materials) (Percentage)

The percentage that we take into consideration in this item is 120%. This is the summed up value with the 20% profit already taken into account. The decimal equivalent of this percentage is 1.20. Then,

Selling price = ($1.20) (1.2)

Selling price = $1.44

Hence, the selling price of the item should be $1.44.