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

A housecleaning agency was given a key to a customer's house so that the agency could have its employees clean while the homeown

poizon [28]

Answer:

C. She will prevail, because the maid's failure to lock the door created the risk that someone might enter and take the homeowner's valuables.

Explanation:

Based on the argument presented above, the homeowner will likely prevail against the agency because, the maid whibis an employee of the cleaning agency got the home exposed by failing to get the doors locked which might have allowed unwarranted entry into the building. The fact that there was no forced entry through any of the entry channels and the disappearance of valuables gives the homeowner a stronger case to make in this scenario in her case against the agency.

7 0

3 years ago

A side benefit of international trade is that it links national interests and increases the opportunity costs of war.

White raven [17]

Answer:

A side benefit of international trade is that it links national interests and increases the opportunity costs of war.

True

7 0

4 years ago

Gentle Ben's Bar and Restaurant uses 6,700 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottl

Marat540 [252]

Answer:

a. The answer is:762 bottlé.

b. The answer is: 487 bottles.

Explanation:

a. The economic order quantity is calculated as: $\sqrt{(2xDxS/H)}$ = $\sqrt{2 x 6968 x 25)/0.6$ = 762 units because: D = annual demand = Weekly demand x week opening per year = 134 x 52 = 6968; S = Cost per order = 25; H = Holding cost per unit = 15% x purchase price = 15% x 4 = 0.6

b. Inventory level to place order:

With the inventory system providing a 95 percent service probability, z level is 1.64 (using the NORM.S.INV function in excel).

So Inventory level to place order = 134 * 3 + 1.64 * 30 * 3^0.5= 487 bottles.

7 0

3 years ago

Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $22,000,000 of 20-yea

Nina [5.8K]

Answer and Explanation:

The Journal entry is shown below:-

Cash Dr, $22,000,000

To Bonds payable $22,000,000

(Being issuance of bonds is recorded)

2. Interest expenses Dr, $440,000

($22,000,000 × 4% × 6 ÷ 12)

To cash $440,000

(Being payment of interest is recorded)

3. Bonds payable Dr, $22,000,000

To Cash $21,560,000

To Gain on Retirement on bonds, plug $440,000

(Being the retirement of bonds is recorded)

3 0

3 years ago

Google this for me: What is business management?

Yuliya22 [10]

Business management<span> trains people for managerial roles in technology, retail, education, government and other sectors.</span>

4 0

4 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