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Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
I was very confused about the 100. Still a little unsure
Which question are you referring to?
If it is Question 5, since the profit is 20% of the cost the selling price must be 100% + 20% = 120% of the cost.
Therefore the target cost must be 600/120% = $500.
It took my brain a while to figure out that reverse mathematical operation! I was only convinced when I realized that 20% of 500 (the unknown cost price) is 100 and when added gives us that 600 sale price. Defeated by math…
Posted for anyone else coming here to figure it out.
For sure. I think the vocabulary is just as important!
Thanks for the lecture and the questions
Oh yeah! ?%
This was perfect am probably progressing i got 100%.despite being average in chapt.1 Thank you Open tuition.
Hi, I’m confused by question 5..
Is it possible you can do a breakdown?
The selling price is $600.
For the profit to be 20% of the cost, the cost needs to be 100/120 x $600 = $500, and this is therefore the target cost.
The estimated cost is actually $520, and therefore the cost gap is 520 – 500 = $20.
I hope am making a progress
Thank youu for the quiz . I got 8% . My mistake at Q5 , i think the markup is markup cost ??
The mark-up is the profit as a % of the cost.