[zainrajput]

its a mock question, the answer mentioned is 34.951. but i don’t understand the logic behind it. the sales director believes highest possible sales price for the company to achieve its target for 15000 units is 250$.
total production costs are 140$ per unit and non production cost per unit is 0.049.

then they’ve added 140+0.0409=140.049
selling price per unit for the bags is 250 and sales director wants to achieve 30& profit margin. so 250*30%=75 and 250-75=175

cost gap is calculated as 174-140.049=34.951.
meaning cost gap is only the difference between between desired profit margin figure and total production and non production cost, thats it?

[zainrajput]

Actually i figured the answer to be 8220 adverse is that correct?

[zainrajput]

thankyou 🙂

[zainrajput]

thankyouu

[zainrajput]

thankyou so much

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