If management’s profit guidelines mandate gross margins of 25 percent, calculate the markup percentage that would be equivalent to this gross margin.
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If management’s profit guidelines mandate gross margins of 25 percent, calculate the markup percentage that would be equivalent to this gross margin.
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- Use all the Cost-Volume-Profit related applications to analyse the company and then determine the amount that the company should make, at least, to make profit, and a 10% profit.Which of the following ratios indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? a. costs and expenses ratio b. contribution margin ratio c. margin of safety ratio d. profit ratioA rate is made up of claims, retention and profit. If 80% of a rate is claims, and retention equates to 20% of claims, what percent is left over for profit?
- What will be the operating profit ratio, if operating ratio is 81.38%?If a product sells P^(7500) and costs P^(4300) to manufacture, its gross margin is P^(3200). Find the margin percent.The dollar amount of sales needed to achieve a target operating income is computed by dividingbtarget operating income by the contribution margin ratio True False
- If an item will be priced according to a 55 percent gross margin and the item costs $20, use that gross margin percentage to directly calculate the item’s priceWhen the gross profit percentage (Markup) of costs is 30%the gross profit percentage of sales is equal to:If the gross profit rate on cost is 30%, what is the equivalent rate based on sales? (whole number and indicate % without space)
- What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratioB. Contribution margin ratioC. Costs and expenses ratioD. Profit ratioFind (a) total sales revenue, (b) selling price, (c) rate of return on investment, and (d) markup percentage on full cost for this product.How many statements below regarding margin of safety are correct? 1. It is the amount by which sales can be reduced without incurring a loss. 2. It is the difference between budgeted sales and breakeven sales. 3. It can be expressed in terms of unit, pesos or percentage of sales. 4. Its presence indicates that the company expects profit. 5. The product of margin of safety units and unit contribution margin is the projected profit for the period. 6. The higher the margin of safety, the lower is the risk of incurring operating loss. 3 4