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How does gross profit margin increase?
Increase in the price at which you SELL the good if the cost price at which you BOUGHT/PRODUCED the good remains the same or Decreased Cost Price with a Stable Selling Price. Basically anything that would result in the difference between the Selling Price and Cost Price increasing favourably.
Variable costs per unit will increase as production decreases.?
Variable cost per unit remains same with level of production and no change in change in level of production.
If the unit selling price is 2.50 and the unit cost is 1.00 what action is needed to maintain the gross margin percentage when unit cost increases 0.25?
To maintain the gross margin percentage when the unit cost increases from 1.00 to 1.25, you need to adjust the unit selling price accordingly. The original gross margin percentage is calculated as (Selling Price - Cost) / Selling Price. With the new cost, you would need to increase the selling price to ensure the gross margin remains the same. Specifically, you can calculate the new selling price needed to achieve the desired gross margin percentage based on the updated cost.
How do you get a cost price and a markup if you know the selling price and profit?
Selling price less profit equals cost price. The markup is the profit plus cost price.
If the unit selling price is 2.50 and the unit cost is 1.00 what action is needed to maintain the gross margin percentage when the unit cost increases 0.25?
To maintain the gross margin percentage after the unit cost increases from $1.00 to $1.25, the unit selling price must also be adjusted upward. The current gross margin percentage is calculated as (Selling Price - Cost) / Selling Price, which is (2.50 - 1.00) / 2.50 = 60%. With the new cost, the selling price needs to be increased to ensure the gross margin remains at 60%. This would require raising the selling price to approximately $1.56 to maintain the same margin percentage.
What happens if the price per unit decreases because of competition but the cost structure remains the same?
If the price per unit decreases because of competition but the cost structure remains the same
If the price per unit decreases because of competition but the cost structure remains the same will the breakeven point rise?
Yes breakeven point will rise because contribution margin per unit reduces that's why more units require to recover fixed cost.
What does it mean if a stock's price remains unchanged?
it means the cost stays the same
How does gross profit margin increase?
Increase in the price at which you SELL the good if the cost price at which you BOUGHT/PRODUCED the good remains the same or Decreased Cost Price with a Stable Selling Price. Basically anything that would result in the difference between the Selling Price and Cost Price increasing favourably.
Is depreciation a fixed cost?
Yes it is a fixed cost. Reason being that a fixed cost remains unchanged in total as the level of activity increases or decreases. Example of fixed costs include depreciation of plant and equipment, cost of council rates and rent.
What is the relationship between constant marginal cost and the overall cost structure of a business?
The relationship between constant marginal cost and the overall cost structure of a business is that when the marginal cost remains constant, it means that the cost of producing each additional unit of output does not change. This can lead to a more predictable and stable overall cost structure for the business, making it easier to plan and manage expenses.
A is a fixed cost b is a variable cost. during the current year the level of activity has decreaed but is still within the relevant range. we would expect that?
A remains constant and B decreases. profit decrease
Did the cotton gin decrease cottons value price?
The cotton gin made labor easy for people or slaves, so the cost decreases.
Variable costs per unit will increase as production decreases.?
Variable cost per unit remains same with level of production and no change in change in level of production.
How much did the Grand Coulee Dam cost?
The eventual cost of the Grand Coulee Dam was about 300 million dollars. It still remains the largest concrete structure ever built.
How you will build a price structure?
By doing a cost accounting.. Take the ingardients,manpower,time,infra invested in the process.Add all the costs and add your margin.That is the price!
Differentiate mark up and mark down?
Markup refers to the amount added to the cost price of a product to determine its selling price, often expressed as a percentage of the cost. In contrast, markdown is the reduction in the selling price of a product, typically used to encourage sales or clear inventory. While markup increases the price above cost, markdown decreases it below the original selling price. Both strategies are essential in retail pricing and inventory management.
