Question

In this question you need to complete the below calculations and find out the most and least profitable company out of 5 mentioned below. Bring an example and calculate the EBIDTA for the most profitable company.

a.   How much is the margin (in number and %) if the sale price = $94 and cost = $25
b.   How much is the mark up (in number and %) if the sale price = $910 and cost = $38
c.   How much is the margin (in number and %) if the sale price = $65 and mark up 45%
d.   How much shall the product be sold if the cost = $16 and margin = 50%
e.   If you know that the cost = $21 and markup = $33, please find margin in %

Answer 1

a.

Margin = Selling price - cost price

= 94 - 25 = $69

Margin % = 69/94 × 100 = 73.4%

b.

Markup price = Selling price - cost

= 910 - 38 = $872

Markup% = 872/38 × 100 = 2294.71%

c.

The working for this question is shown below.

d.

The working is shown below.

e.

Working is shown below

The best alternative is chosen by comparing the highest markup% or margin %. In that case, option B is the most profitable.

Similarly, option c is least profitable with margin % just 31.05%. Hence it's the least preferable.

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