b.Press 
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Example: What is the net return on an item that is sold for $11.98, discounted through distribution an average of 35% and has a manufacturing cost of $2.50? The standard company operating expense is 32% of net shipping (sales) price and tax rate is 48%.
| Keystrokes |
| Display |
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CLEAR |
| 100.00 |
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100 | 0 |
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1 | .48 | 6 | 0.52 | 48% tax rate. |
11.98 | 1 |
| 11.98 | List price ($). |
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35 | 2 |
| 35.00 | Discount (%). |
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2.50 | 3 |
| 2.50 | Manufacturing cost ($). |
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32 | 4 |
| 32.00 | Operating expenses (%). |
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| 12 |
| 67.90 |
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| 43 |
| 18.67 | Net profit (%). |
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If manufacturing expenses increase to $3.25, what is the effect on net profit?
3.25 | 3 | 3.25 | Manufacturing cost. |
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| 12 | 58.26 |
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| 43 | 13.66 | Net profit reduced to 13.66% |
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If the manufacturing cost is maintained at $3.25, how high could the overhead (operating expense) be before the product begins to lose money?
0 | 5 |
| 0.00 |
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| 12 | 58.26 |
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| 38 | 58.26 | Maximum operating expense (%). |
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At 32% operating expense and $3.25 manufacturing cost, what should the list price be to generate 20% net profit?
20 |
| 5 |
| 20.00 |
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| 3 |
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| 11.00 |
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1 |
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| 14 | 16.93 | List price ($). |
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