None SuGar Co. is run by Susan and Garry, who have been business partners for more than20 years. Their specialty is to produce and sell solid wood tables. Last year, theircosts to produce and sell the tables included raw materials ($200 per table), directlabour ($100 per table), and shipping ($50 per table). They then added a 60% marginto determine their price. This year, the cost of their raw materials increased by 50%.Their other variable costs did not change. If they intend to keep their price ($) thesame as before, what is their new margin (%) rounded to the nearest percentage?75%33%100%49%

Margin percentage is calculated by dividing margin amount by sales revenue. Margin amount is the…

Answered: at is their new margin

Business

Accounting

at is their new margin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

None

SuGar Co. is run by Susan and Garry, who have been business partners for more than
20 years. Their specialty is to produce and sell solid wood tables. Last year, their
costs to produce and sell the tables included raw materials ($200 per table), direct
labour ($100 per table), and shipping ($50 per table). They then added a 60% margin
to determine their price. This year, the cost of their raw materials increased by 50%.
Their other variable costs did not change. If they intend to keep their price ($) the
same as before, what is their new margin (%) rounded to the nearest percentage?
75%
33%
100%
49%

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