PM Chapter 2 Questions Target costing

Comments

1. zunaibkhan says

   September 14, 2023 at 7:40 am

   i got 100% in 1st attempt. awesome

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2. Lanray says

   September 6, 2023 at 2:06 am

   I still cant grasp question 5, why did we use ((100/120)*600)

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   • John Moffat says

     September 6, 2023 at 3:43 pm

     The mark-up is 20% of cost. So for every $100 cost they add on $20 and the selling price is $120.

     Therefore the cost is $100 for every $120 of selling price. So for a selling price of $600 they need the cost to be 100/120 x $600.

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