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Hi Dear Tutor, I have a question.
I did not find gross profit margin under new method given 50%
Sunday
revenue-16000
profit(16000*0.7)-11200-says 20% lower then 11200*0.8=8960 but in the quesyion it has showed as 8000 and gross profit 50% need explanation?thanks in advance
Dear Tutor, another question is that if the company is considering opening on Sunday why 6o days are considered not 7 days?
Question a says consider sunday incremental revenue exceeds incremental costs over a yearof period ?why here over a year of period is considered 6 days per week not seven days?
I understand that Sunday revenue should be taken for calculation not including Sunday itself but the company opens for seven days not 6 days therefore I am confused
The question says that the average gross profit is 70%. It then says that on a Sunday it will be 20 % points lower. So on a Sunday it will only be 50%.
The answer is showing all 7 days, but because the profit is different on Sundays it is having to calculate Sunday results (50 days a year) and other days results (300 days a year) separately.
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