Hi please help me
Answers

30/120 * 1.4 = Price0

Remember that if he spent £30 and wants to make 40% profit, he needs to make a total of (30 * 140%) £42.
So if he needs to make £42 and has 120 cans, he can divide 42/120 to get the answer per can.
There are several ways to work this question out, if you can figure out a few different methods then that would tell me you understood it completely.
 Pol1 
Hello,
Would you not £ 30/0.6 = £ 50 for the total
So, £ 50  £ 30 = £ 20 Profit (£ 20 / £ 50 = 40 %)
£ 50 / 120 cans = £ 0.4167 say £ 0.42
0 
???crispy said:Hello,
Would you not £ 30/0.6 = £ 50 for the total
Why did you divide by 0.6? To get the total (Spend + 40% Profit) you would Multiply by 1.4 or 140% which gives 42.
42  30 = £12 Profit
42/120 = £0.35
Something to note: If in the exam you're asked a question like this, your answer is most likely incorrect if you have a long decimal figure (Like £ 0.4167) UNLESS in the question is states how many decimals to place.
0 
Hi,
Maybe am reading wrong, but as above would not a profit of 12 represent of profit of 28.6 % only (ie. 12 / Selling price of 42). By multiplying by 1.4 I think this would be markingup by 40 %, not achieving a profit margin of 40 %.
The 0.4167 looks a bit wonky to me too but,
Selling Price 0.42
Cost 0.25 (30/120)
Profit 0.17
0.17 / 0.42 = 40 %
I was bored half asleep at work when writing my answer so who knows0 
The answer is 0.35, don't try to argue with that and accept it because it will make your life so much easier with future questions (Trust me, you will want to argue A LOT when things get more complex).crispy said:Hi,
Maybe am reading wrong, but as above would not a profit of 12 represent of profit of 28.6 % only (ie. 12 / Selling price of 42). By multiplying by 1.4 I think this would be markingup by 40 %, not achieving a profit margin of 40 %.
The 0.4167 looks a bit wonky to me too but,
Selling Price 0.42
Cost 0.25 (30/120)
Profit 0.17
0.17 / 0.42 = 40 %
I was bored half asleep at work when writing my answer so who knows
If the sell price was 0.42 and you sold all the cans you would be making £50.40 which is £20.40 MORE than what he bought them for.
That's making a 68% profit. Not 40%
0 
Hi,
Thank you for the advice regarding future questions however I finished AAT maybe 10 years ago....
Sales 50.40
COS 30.00
Profit 20.40
Profit Margin = 40 % (20.4 / 50.4)
Mark Up = 60 % ( 30 / 50.4)
Or maybe im going mad ?
Anyway, hope the OP sees our responses and can take something from it. MarkUp / Margin can get confusing.
0 
MarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
Wow. I hope this is not how you talk or intend to talk to your clients.PolarisDyas said:
The answer is 0.35, don't try to argue with that and accept it because it will make your life so much easier with future questions (Trust me, you will want to argue A LOT when things get more complex).
The question is badly worded in the first place. A 40% profit on what?
Both answers could be correct. I actually came to the same conclusion as @crispy initially, but can see the other answer is also valid.1 
I just added 40% on to £30 which gave me £42, £42 / 120 = 0.350

@MarieNoelle @crispyMarieNoelle said:
Wow. I hope this is not how you talk or intend to talk to your clients.
The question is badly worded in the first place. A 40% profit on what?
Both answers could be correct. I actually came to the same conclusion as @crispy initially, but can see the other answer is also valid.
I read back what I wrote this morning and yes, that shouldn't have been said and I was being very ignorant.
Please accept my apologies for being rude Crispy, you are right; both answers could be correct.1 
Ok guyyss I already worked it out 10 mins after I posted this lol btw and please don't comment anything else especially you polarisdyas0

And BTW that's from a bloody workbook0

Pavan, what was the correct answer and workings in the end?0

Hi,
I'll try to explain:
First work out what the price of one can is:
so 120 cans = £30, therefore 1 can is 30/120 = £0.25 pounds
So then he wants to make a profit of 40%, so add this to 100% = 140%
So 140/100 x £0.25 = £0.35  this is the price he should sell each can of drink in order to earn 40% profit
Hope it helps.
0 
1. You don't own the comments section.
2. The question is worded poorly. I would guess you have left a part out, otherwise I'm surprised a real textbook would word it like that.
@h0llymay the answer is 35p because 120 cans cost £30 which equals 25p per can. Multiply this by 1.40 to get 35p. Not that anyone would know but the question is asking for a mark up of 40%. If it was asking for a profit margin of 40%, you would divide 25p by 0.60 (100% less 40% profit margin) which is how others got 42p. Questions will usually specify mark up or margin.1 
@pavan_515 I'm perfectly calm and I wasn't commenting for YOUR benefit; someone else asked a question1

BTW how do u delete this post so no one can comment on it0

@mike150185 sorry my bad btw stop commenting now0

OK0


I apologise for being rused I know but if you were me wouldn't you be getting frustrated by reviving notifications all day long about this question which has been already answered0

*rude*0

I also like how you've deleted your comments, no one will want to help you out next time if that's the response you give. You're on your own.0

Frustrated or not, do not lash out at members that are trying to help you and others who are also studying AAT. We're all in the same boat.0

Guess your right sorry but please please everyone stop commenting0

I didn't delete any comments0

MarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
@pavan_515pavan_515 said:I apologise for being rused I know but if you were me wouldn't you be getting frustrated by reviving notifications all day long about this question which has been already answered
You can change your settings so you do not receive notifications each time someone comments.
Deleting a question once you have had the answer is not in the spirit of the forum. I am sure other forum users will find the conversation useful.
Please also remember to remain polite even if you disagree.1 
Ok thank you and BTW to all people I've offended I'm sorry thank you very much for giving me the answer even though I um knew it 10 mins after I posted this question0

Pavan_515
It would appear to me that since you got the answer 10 mins after posting the question you didn't initially spend long enough trying to work out the answer. You've put this onto the forum for an easy answer.
When you read through this thread it's length is increased by your comments which seemed to critise.
People who use this forum help each other, I've posted questions which have had several reply's and others have had none.
The question was basic and therefore you should have expected a number of responses.
I would certainly think twice in the future about answering a question posted by you!1