Homework Answers
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| 1 | No | ||
| 2 | Target Cost | = | $ 48 |
| Workings: | |||
| Selling Price | = | $ 80 | |
| Less: | Cost | = | $ 49.50 |
| Profit | = | $ 30.50 | |
| Profit margin | = | $30.50 / $80 | |
| = | 38.13% | ||
| Therefore, profit margin is lower than 40% | |||
| No, Turtle did not achieve its goal | |||
| Target cost to achieve 40% profit margin | |||
| Selling Price | = | $ 80 | |
| Less: | Profit ($80 X 40%) | = | $ 32 |
| Target Cost | = | $ 48 | |
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