Math  /  Algebra

QuestionQuestion 10 (2 points) 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 thre tables included raw materials ( $200\$ 200 per table), direct labour ( $100\$ 100 per table), and shipping ( $50\$ 50 per table). They then added a 60%60 \% margin to determine their price. This year, the cost of their raw materials increased by 50%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\% Next Page Page 10 of 10

Studdy Solution
Calculate this year's new margin percentage.
The selling price remains the same as last year, which is \$560.
The margin is calculated as:
Marginthis year=(Selling Pricelast yearTotal Costthis yearSelling Pricelast year)×100% \text{Margin}_{\text{this year}} = \left( \frac{\text{Selling Price}_{\text{last year}} - \text{Total Cost}_{\text{this year}}}{\text{Selling Price}_{\text{last year}}} \right) \times 100\%
Marginthis year=(560450560)×100% \text{Margin}_{\text{this year}} = \left( \frac{560 - 450}{560} \right) \times 100\%
Marginthis year=(110560)×100% \text{Margin}_{\text{this year}} = \left( \frac{110}{560} \right) \times 100\%
Marginthis year19.64% \text{Margin}_{\text{this year}} \approx 19.64\%
Rounding to the nearest percentage, the new margin is:
20% \boxed{20\%}

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