Ronald wants to make profits by re-selling some phones he bought a week ago. He bought 200 units for just $3000, and he wants to gain a third of the initial investment in profits when all units are sold. Including the profit margin, what will be the selling price for each phone? Let's answer step by step:
The profit Ronald wants is $3000 / 3 = $1000. The profit per phone sold will be $1000 / 200 phones = $5 / phone. The cost of each phone is $3000 / 200 phones = $15 / phone. The selling price including the profit will be $15 / phone + $5 / phone = $20. The answer: 20.