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at is their new margin

at is their new margin

FINANCIAL ACCOUNTING
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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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%
Transcribed Image Text: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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