Question
Sarahs Scarves is introducing an all-wool Christmas scarf. Research indicates that 65,000 scarves can be sold at $20. Sarahs desired profit is $0.75 per scarf,
Sarahs Scarves is introducing an all-wool Christmas scarf. Research indicates that 65,000 scarves can be sold at $20. Sarahs desired profit is $0.75 per scarf, which represents a 24% rate of return. Sarahs would like to determine the target cost per scarf. Which two pieces of information are needed to make this determination and how should they be used?
A : The market price should be divided by the number of scarves sold.
B : The desired profit should be added to the number of scarves sold.
C : The desired profit should be subtracted from the market price.
D : The desired profit should be multiplied by the rate of return.
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