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Please explain logic. Is there an alternate solution ??

  • 1.  Please explain logic. Is there an alternate solution ??

    Posted 09-09-2023 04:36 AM
    Please help in understanding the logic





  • 2.  RE: Please explain logic. Is there an alternate solution ??

    Posted 09-10-2023 05:28 AM

    Hello there!

    Actually there is a formula for this

    Cost of markup= Profit + Fixed cost/ variable cost x Volume

    Since variable cost is given in dollars..there is no need to multiply with the volume

    = 500,000(profit) + 950,000/ 700,000

    = 1450,000/700,000

    = 2.0714 (to make it a percentage multiply it with 100)

    =207.14%

                  



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    Jessy Nair
    Accountant
    Sharjah
    United Arab Emirates
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