for each hat she knits, kate computes her costs as 2 bundles of wool yarn at $5.49 each and labor costs of…

for each hat she knits, kate computes her costs as 2 bundles of wool yarn at $5.49 each and labor costs of $8.79. kate wants to sell her hats for a price that represents a 40% to 50% profit above these costs. which of these represents a reasonable price for which to sell her hats to ensure a profit within this range?

for each hat she knits, kate computes her costs as 2 bundles of wool yarn at $5.49 each and labor costs of $8.79. kate wants to sell her hats for a price that represents a 40% to 50% profit above these costs. which of these represents a reasonable price for which to sell her hats to ensure a profit within this range?

Answer

Explanation:

Step1: Calculate total cost

The cost of wool yarn is $2\times5.49 = 10.98$ dollars. The labor - cost is $8.79$ dollars. So the total cost $C$ is $C=10.98 + 8.79=19.77$ dollars.

Step2: Calculate 40% profit price

The price $P_1$ with a 40% profit is $P_1=(1 + 0.40)\times C$. Substitute $C = 19.77$ into the formula: $P_1=1.4\times19.77 = 27.678\approx27.68$ dollars.

Step3: Calculate 50% profit price

The price $P_2$ with a 50% profit is $P_2=(1 + 0.50)\times C$. Substitute $C = 19.77$ into the formula: $P_2=1.5\times19.77 = 29.655\approx29.66$ dollars.

Answer:

A price between $$27.68$ and $$29.66$ is reasonable. For example, $$28.50$ would be a reasonable selling price within this range.