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Sagot :
MBI's % profit on cost is $6.00.
MBI's unit variable cost is $6 per unit.
Unit Total Cost, using F1=10*(120%) =$8.00. UFC=$20,000/10,000=$2.00.
Therefore, UVC=$8-$2=$6.00
The profit margin is calculated with the selling price (or sales) taken as base times 100. it's miles the proportion of the selling price that is changed into profit, whereas "profit percent" or "markup" is the percentage of the price that one receives as income on top of the cost rate. even as selling something one ought to realize what percentage of income one will get on a particular funding, so companies calculate earnings percent to locate the ratio of income to cost.
The profit margin is used basically for inner assessment. it's far hard to appropriately compare the net profit ratio for distinctive entities. man or woman organizations' running and financing preparations vary a lot that one-of-a-kind entities are certain to have exclusive ranges of expenditure so that assessment of 1 with another can have little which means. A low-income margin indicates a low margin of protection: a higher danger that a decline in income will erase profits and result in an internet loss, or a poor margin.
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