mark up
GDIPIETRO
Registered Posts: 7
Hi, I had question in my last CTRM exam similar to the below, can someone please give me an idea on how to approach to this question , thanks in advance !
G.
“Product B it’s sold at 20% mark up on cost and make a profit of 45£ per units. Calculate the profit per units, assuming the cost price remaining unchanged but is now sell at 40% margin..”
G.
“Product B it’s sold at 20% mark up on cost and make a profit of 45£ per units. Calculate the profit per units, assuming the cost price remaining unchanged but is now sell at 40% margin..”
0
Comments
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20% Markup:
Profit = COST x 20%
£45 = COST x 20%
COST = £45/0.2 = £225
40% Margin:
SELLING PRICE X 40% = Profit
SELLING PRICE x 60% = COST = £225
SELLING PRICE = £225/0.6 = £375
Profit = SELLING PRICE - COST PRICE = £375 - £225 = £150
or
Profit = SELLING PRICE x 40% = £375 x 40% = £150
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thanks!!!0
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You're welcome0
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