All categories

3 years ago

If gross margin on a product is 25% what is the corresponding markup percentage

Business

1 answer:

Oxana [17]3 years ago

3 0

Answer:

With a selling price of $100 and a cost of $75, the $25 markup as a percentage of the $75 cost is 33.33% ($25/$75). The gross profit of $25 ($100 - $75) also means a gross margin of 25% ($25 gross profit divided by the selling price of $100).

Explanation:

Let's begin by assuming that a company's product has a cost of $75 and the company desires a 25% gross margin (or 25% of the selling price). Let's use "SP" to indicate the product's required selling price and "MU$" to represent the gross profit, and state the gross margin as 0.25SP. This means that:

SP = Cost + MU$

SP = $75 + MU$

Since MU$ must be 25% of SP, we can state: SP = $75 + 0.25SP

Restating the previous point, we have: SP - 0.25SP = $75

Restating the previous point, we have: 0.75SP = $75

After dividing each side of the equation by 0.75, we have: SP = $100

You might be interested in

One way to obtain the economically efficient amount of college education is for governments to subsidize college education. What

Karolina [17]

Answer:

The remaining part of the question is given below:

(Note that the subsidy can be granted to the education institutions or to the students directly or indirectly; for example, through low- interest student loans.)

a. P2-P0

b. P2-P1

c. P0-P1

d. P1

Correct Answer:

b. P2-P1

Explanation:

A pigouvian subsidy is a subsidy that is used to encourage behaviour that have positive effects on others who are not involved or society at large. Behaviors or actions that are a benefit to others who are not involved in the transaction are called positive externalities.

7 0

3 years ago

Suppose the revenue from producing (and selling) x units of a product is given by Upper R (x )equals 10 x minus . 04 x squared

Volgvan

Answer:

marginal revenue is -6

and production levels 200, 50

Explanation:

given data

R(x) = 10 x - 0.04 x²

solution

we have given

R(x) = 10 x - 0.04 x²

so here R'(x) is

R'(x) = 10(1) - 0.4 (2x)

R'(x) = 10 - 0.8 x ....................1

so here at x is 20 marginal revenue will be

R'(20) = 10 - 0.8(20)

R'(20) = 10 - 16

R'(20) = - 6

and

when revenue is $400

R(x) = 400

400 = 10 x - 0.04 x²

x= 200, 50

7 0

3 years ago

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or

Vlada [557]

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the Time period principle.

The time period principle- Financial results and other material business activities should be reported over a consistent time period, such as a month, week, day, etc., in accordance with the time period concept. Depending on the frequency of the chosen time period, the firm must then adhere to a distinct set of regulations for each financial statement in accordance with US Generally Accepted Accounting Principles.

Any company's financial statements can be thought of as a snapshot in time that reveals both the company's history and its current status. That's why it's crucial to disclose to readers the time frame in which the financial statements were generated in accordance with the time period concept.

In its broadest sense, the time period principle holds that any enterprise may conveniently categorize its financial operations into discrete time intervals. That is to say, all cash inflows and outflows may be neatly categorised into separate and sequential accounting periods.

To know more about Time period principle refer here:

brainly.com/question/13035515

#SPJ4

3 0

1 year ago

Formulating Financial Statements from Raw Data

Tpy6a [65]

Solution:

General Mills, Inc., Income statement for year ended May 25, 2003

Particulars Millions $

Revenue $10,506

Less Cost of goods sold - 6,109

----------------

Gross profit 4,397

----------------

Less operating expenses - 3,480

-----------------

917

-----------------

Balance sheet May 25, 2003

Assets Million $ Liabilities Million $

Cash 703 Total Liabilities 13,752

Non cash 17,524 Stockholders' equity 4,475

Total assets 18,227 Total Liabilities & equity 18,227

Statement for cash flows for year ended May 25, 2003

Particulars Million $

Cash from operating activities 1,631

Cash from financing activities - 885

Cash from investing activities - 1,018

--------------

Net change in cash -272

----------------

Cash, beginning year 975

-----------------

703

A negative amount for cash from financing activities reflects the reduction of long term debt

Profit margin = ( Net income / Revenue ) * 100

= ( 917 / 10,506 ) * 100

= 8.72%

Asset turnover = Revenue / total assets

= 10,506 / 18, 227

= 0.57

Return on assets =( Net income / Total assets ) * 100

= ( 917 / 18, 227 ) *100

= 5.03%

Return of equity = ( Net income / Total shareholder equity )*100

= ( 917 / 4,475 ) *100

= 20.49%

4 0

3 years ago

Weaver Company's predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour.

Misha Larkins [42]

Answer:

1. $590

2. $9.83

Explanation:

Total Number of Direct Labor Hours:

= Total Labor Cost ÷ Labor Rate Per Hour

= 150 ÷ 15

= 10 Hours

Total Overheads:

= Total Number of Direct Labor Hours*Predetermined Overhead Rate

= 10 × 21

= 210

Total Manufacturing Cost = 230 + 150 + 210

= $590

Average Cost:

= Total Manufacturing Cost ÷ Number of Units

= 590 ÷ 60

= $9.83

3 0

3 years ago

If gross margin on a product is 25% what is the corresponding markup percentage​

If gross margin on a product is 25% what is the corresponding markup percentage