Answer:
D would be the correct answer
Answer:
$38.
Explanation:
Management perform Cost, Volume, and Profit (CVP) analysis to calculate break-even points, set target costs, and to set target profits. It helps them in formulating strategies effectively, reducing costs to generate maximum profit, and to utilize resources efficiently.
As we know that profit is the difference between sales and costs. So, the target cost can easily be calculated by re-arranging the profit equation which is given below;
Profit = Sales - Total Cost
⇒ Total / Target Cost = Sales - Profit
Simply put the figures in the above equation and it gives you;
Target cost = 53 - 15 = $38 OR 72% (38 / 53).
Note: It is more appropriate to state target profit on percentage basis. Here the percentage of target cost is 72%.
Answer:
Ice cream after price reduction costs $ 2.5
Explanation:
Because to know the value of the price to be discounted we must know how much 17% is equivalent, we find out that value with a simple three rule like that;
100% --> $ 2.99
17% ---> X
then we find the value of X;
17 × 2.99 = 100 × X
= X
0.5083 = X (this is the value to be discounted)
so we subtract this from the value before reduction
2.99 - 0.5083 = 2.5
So we have the ice cream after reducing the price by 17%, it will cost $ 2.5
The answer is False. I had it on a test and picked true, i got it wrong.
