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What does MARK-UP mean?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › What does MARK-UP mean?

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.
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    Posts
  • September 13, 2012 at 2:31 am #47067
    sunnyfish2001
    Member
    • Topics: 15
    • Replies: 24
    • ☆

    In Chapter3 Lifecycle costing example1,
    The company wishes to achieve a mark up of 50% on cost.

    In the calculation, teacher calculated total selling price first. It is 525,000. Then use 50%multiplied by 525,000. Cost is 262,500. Is it right?

    In my opinion, I would like to calculate cost 525,000*1/(1+50%)=350,000

    I am looking forward to an answer. Thank you!

    September 15, 2012 at 8:26 am #75453
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    Which lecturer??? There is no lecture on this chapter on the website.

    The answer to the example is at the back of the Course Notes, and your answer is correct – the target cost is $7 per unit (which is 350,000 in total).

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