I'm wondering if anyone could help clarify the last step in the given practice test problem. I believed that after finding the hourly billing rate, which I found correctly, that I would then divide that number by the inverse of the target percent profit. Leading to my answer $86. Black Spectacles is saying that I should have just multiplied by the target profit percent and added that to the found hourly bill rate.
Is the concept of using the inverse percent only applicable to finding the net multiplier from the break even rate? Or is Black Spectacles incorrect in this instance.
Any input greatly appreciated.
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