BPP Revision Kit _ question 1.7 — OpenTuition Forums

EEsther12y ago

Hello John :) I am struggling with the question 1.7 because I dont understand how it is calculated the target profit. I dont see this 20% of sales prices on the question. Thanks for your help Esther

John MoffatTutor12y ago#1

There is a mark-up of 25% of cost. So for every $100 cost, the profit is $25 and the selling price is $125. Or putting it the other way round, for every $125 selling price the profit is $25, which is 25/125 or 20% of selling price.

EEsther12y ago#2

Thanks Moffat! After you explanation its so clear. Many thanks for your help

John MoffatTutor12y ago#3

You are welcome :-)

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