03-20-2009, 05:33 AM
u said that it is margin of 8.
you r right.
please tell me where i m wrong.
as i know margin is profit on sale whereas markup is profit on cost.
in this question it is profit on sale it means our sales are 100.
As sale always contains both cost and profit so in this 48 contains both cost and profit.
now assuming this 48 is equal to 100 means 80% is cost and 20% is profit.
so, cost=(80/100)*48
cost=38.4
profit=48-38.4=9.6
whereas you assumed cost=100 and sale=120
why?
you r right.
please tell me where i m wrong.
as i know margin is profit on sale whereas markup is profit on cost.
in this question it is profit on sale it means our sales are 100.
As sale always contains both cost and profit so in this 48 contains both cost and profit.
now assuming this 48 is equal to 100 means 80% is cost and 20% is profit.
so, cost=(80/100)*48
cost=38.4
profit=48-38.4=9.6
whereas you assumed cost=100 and sale=120
why?
