Markup on total cost %

Hello,

Can someone please explain to me how to calculate the markup on total cost % - I have attached the question.

Thank you

Comments

  • dumutrobadumutroba AAT Student, AATQB Posts: 254
    Mark up on total cost is exactly that, an increase(up) on cost to ensure profit will be made
    For example cost of sales (100%)+mark up (20%) = turnover 120%
    So knowing the sales and cost of sales will help us find the mark up %
    Total cost of sales (fixed + variable) £14710150 and Turnover £16800000
    Substitute in the formula to get £2089850
    To find what percentage is that of cost : 2089850/14710150*100=14.21 rounded up
    AAT Level 2. 2018 Distinction
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  • jmhjmh Registered Posts: 41
    thank you,

    I have one more question - I have attached the question. I am struggling to calculate the Inventory holding period. The answer is 148 days and i get 147. I would appreciate if you could explain where I am going wrong. I calculated the average of the inventory first.

    thank you
  • dumutrobadumutroba AAT Student, AATQB Posts: 254
    I am sorry but I don't see the question
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
    Xero Certified Advisor
  • jmhjmh Registered Posts: 41
    what about now?
  • jmhjmh Registered Posts: 41
    oh dear i will resend properly - sorry about this,
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