None SuGar Co. is run by Susan and Garry, who have been business partners for more than20 years. Their specialty is to produce and sell solid wood tables. Last year, theircosts to produce and sell the tables included raw materials ($200 per table), directlabour ($100 per table), and shipping ($50 per table). They then added a 60% marginto determine their price. This year, the cost of their raw materials increased by 50%.Their other variable costs did not change. If they intend to keep their price ($) thesame as before, what is their new margin (%) rounded to the nearest percentage?75%33%100%49%

Margin percentage is calculated by dividing margin amount by sales revenue. Margin amount is the…

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at is their new margin

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 6CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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