- This topic has 2 replies, 2 voices, and was last updated 1 year ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Target Cost gap
Please can someone help me understand this question – many thanks.
Product B expected selling price per unit $15.00
Target profit 25% on cost
Current cost $12.60 per unit
what is the cost gap?
answer 60 cents
doesnt matter its the margin mark up thing isnt it
i kept doing 15.00/100 – when it should be 15.00/125
Yes, it is because the target profit is 25% of the cost and therefore the cost must be 100/125 x $15 = $12. (and, of course, it checks because the profit is 15 – 12 = $3, and this is 25% x $12 🙂 )