In March 2012, the second year of production, the cost of producing an iPad 2 fell to an estimated $249.41. What markup percentage would Apple need to use to maintain its $620.00 sales price? (Round answer to 1 decimal place, e.g. 25.2%.) The gross margin in the previous question was 59% Markup percentag
In March 2012, the second year of production, the cost of producing an iPad 2 fell to an estimated $249.41. What markup percentage would Apple need to use to maintain its $620.00 sales price? (Round answer to 1 decimal place, e.g. 25.2%.) The gross margin in the previous question was 59% Markup percentag
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In March 2012, the second year of production, the cost of producing an iPad 2 fell to an estimated $249.41. What markup percentage would Apple need to use to maintain its $620.00 sales price? (Round answer to 1 decimal place, e.g. 25.2%.)
The gross margin in the previous question was 59%
| Markup percentag |
Expert Solution
Step 1
Markup means amount added to the cost of product to cover overheads and profit.
Markup percentage is calculated by formula:
Markup percentage =( 100* ( sale price - cost))/ cost
Given information is:
In March 2012, the second year of production, the cost of producing an iPad 2 fell to an estimated $249.41. What markup percentage would Apple need to use to maintain its $620.00 sales price.
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