Divide the amount of profit by sales price to find the percentage. #3 Same thing here, except we're solving for a dollar amount. If my required profit percentage is 40% of sales price, then my cost must be 60% of the sales price. They must always add up to 100%. What amount is 120 (cost) 60% of?

Divide the amount of profit by sales price to find the percentage. #3 Same thing here, except we're solving for a dollar amount. If my required profit percentage is 40% of sales price, then my cost must be 60% of the sales price. They must always add up to 100%. What amount is 120 (cost) 60% of?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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