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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Original Message:
Sent: 09-09-2023 04:35 AM
From: Royline Gonsalves
Subject: Please explain logic. Is there an alternate solution ??
Please help in understanding the logic