To make this as simple as possible: you are in business to sell a widget. You have searched the world over and found that the best price--your cost--on a widget is $1.00 (one dollar). Again, for simplicity's sake, there are no other costs associated with the selling of this widget--no rent, labor, utilities, postage, shipping, or whatever--just the cost of the widget ($1.00), which you now have in stock and are ready to sell.
And, again for simplicity's sake, after selling this one widget, you will close up shop, count your money, calculate your profit, and pay your widget supplier what he is due ($1.00). For illustrative purposes, your one customer--who will buy the one widget you have for sale--will pay you in quarters.
To make 50% profit, what then is your selling price for this widget?
And, again for simplicity's sake, after selling this one widget, you will close up shop, count your money, calculate your profit, and pay your widget supplier what he is due ($1.00). For illustrative purposes, your one customer--who will buy the one widget you have for sale--will pay you in quarters.
To make 50% profit, what then is your selling price for this widget?