Question

At the current cost of growing basil, what would be the appropriate price to achieve a target margin of 60%

Answer 1

$1.85

Step-by-step explanation:

Calculation for what would be the appropriate price to achieve a target margin of 60%

Using this formula

Appropriate price to achieve 60%Target margin=Cost of growing basil/(1-Target margin)

Let plug in the formula

Appropriate price to achieve 60%Target margin=$0.74 / (1 - .60)

Appropriate price to achieve 60%Target margin=$0.74/0.4

Appropriate price to achieve 60%Target margin= $1.85

Therefore At the current cost of growing basil, what would be the appropriate price to achieve a target margin of 60% will be $1.85