Accounting CVP Analysis (1 Viewer)

[mreditor16]

Here is the question I have:





And here is my working out. Could someone confirm it's right? Thanks

 

[Rhinoz8142]

Here is the question I have:





And here is my working out. Could someone confirm it's right? Thanks

I figured out another way but I am not sure if its correct..

so u get your new variable price..which is 6.48 then figure out the increase from the old variable price.

then used that percetage mark up to figure out the new selling price

the increase percentage from the new and old variable price is 12.5%
OLD selling Price x 12.5% (increase)

= $10.80

 

[mreditor16]

I figured out another way but I am not sure if its correct..

so u get your new variable price..which is 6.48 then figure out the increase from the old variable price.

then used that percetage mark up to figure out the new selling price

the increase percentage from the new and old variable price is 12.5%
OLD selling Price x 12.5% (increase)

= $10.80

Oh that works as well, because you're aiming to maintain the mark up for same CM. nice!