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Target cost gap

This topic has 4 replies, 2 voices, and was last updated 10 years ago by John Moffat.

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November 24, 2014 at 11:54 am #212636
shobs4803
Member
- Topics: 3
- Replies: 8
Sir could you help me please:
Target selling price = $20
Target Profit margin= 30%
estimated production cost $16 cost per unit
what is the target cost gap for this product?
I know the answer but don’t know how they got it..
November 24, 2014 at 11:58 am #212637
shobs4803
Member
- Topics: 3
- Replies: 8
Sir I got it…0.70 x 20= $14
$16- $14.= $2.00
is this correct or even anyone else can help …
Thanks
November 24, 2014 at 4:16 pm #212712
John Moffat
Keymaster
- Topics: 57
- Replies: 54659
Yes – the answer is $2.00
(If you want others to help you, you should ask in the ordinary F9 Forum. This forum is Ask the ACCA Tutor and is for me to help 🙂 )
November 24, 2014 at 5:33 pm #212803
shobs4803
Member
- Topics: 3
- Replies: 8
will do sir..
November 24, 2014 at 8:28 pm #212873
John Moffat
Keymaster
- Topics: 57
- Replies: 54659
Great 🙂
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