You need to be careful with the mark-ups and margins. You've calculated the 625 based upon a margin of 25% (25/100 x $10m x 1/4) and not a mark-up of 25% (25/125 x $10m x 1/4), so the answer given in the lecture and the notes is therefore correct.
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P
phaedo·
In the example S sells to P with a mark up. Is the calculation in the lecture therefore correct? Is it really a (500) adjustment or a (625)?
You need to be careful with the mark-ups and margins. You've calculated the 625 based upon a margin of 25% (25/100 x $10m x 1/4) and not a mark-up of 25% (25/125 x $10m x 1/4), so the answer given in the lecture and the notes is therefore correct.
Thanks
Thanks.