QuestionQuestion 7 (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 the tables included raw materials ( per table), direct labour ( per table), and shipping ( per table). They then added a margin to determine their price. Thisłyear, the cost of their raw materials increased by 50\%. Their other variable costs did not change. If they intend to keep their price (\33 \%100 \%49 \%$
Studdy Solution
Determine this year's margin percentage.
The selling price remains the same as last year, which is $560. This year's margin is calculated as follows:
\[ \text{Margin}_{\text{this year}} = \frac{\text{Selling Price} - \text{Total Cost}_{\text{this year}}}{\text{Total Cost}_{\text{this year}}} \times 100\% \]
Rounded to the nearest percentage, this year's margin is:
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