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11. Ben, a fishing equipment manufacturer, is negotiating with one of his customers, Chris, who runs...

11. Ben, a fishing equipment manufacturer, is negotiating with one of his customers, Chris, who runs a fishing shop. Ben has a cost of sales of £18 for each reel of fishing line sold. What will his selling price to Chris be, if he is to make a sales margin of 40%?

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Calculation of Margin on cost of sales Margin on Sales 40% Assume the selling price as 100 Then, Margin on sales- є 100 x 40% Cost of sales Selling price - Margin €100-€40 Margin on cost of sales would be- Margin / Cost €40 / є60 66.6790 Cost of sales 18 Margin on Cost of sales - Cost x Margin on cost € 18 x 66.6790 Selling price - Cost + Margin = 30

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