P2-D2 saysDecember 31, 2018 at 10:32 amHiYou 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.ThanksLog in to Reply

phaedo saysMarch 25, 2018 at 12:23 pmIn 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)?Thanks.Log in to Reply

P2-D2 says

Hi

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

phaedo says

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)?

Thanks.