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Hello Everyone. I would really appreciate some assistance finding the Product Margin and Customer Margin for this company:
Since total Sales which is not included, I multiplied the number of units (16) to selling price ($450) which comes to a total of $7200. However, when I add $7200, to the Direct Labour ($12) Direct Materials ($225) and Customer Orders (16) it comes to $7453 which will give me a negative number when I minus from $7200.
I also followed this formula:
The profit margin: 450225(4*12)
= 177*16 or 2,833
= 2,832/7200 = 39%
I know I am doing something wrong but cannot figure out how to solve this with the given information. I would appreciate your help. Thank you very much!
Since total Sales which is not included, I multiplied the number of units (16) to selling price ($450) which comes to a total of $7200. However, when I add $7200, to the Direct Labour ($12) Direct Materials ($225) and Customer Orders (16) it comes to $7453 which will give me a negative number when I minus from $7200.
I also followed this formula:
The profit margin: 450225(4*12)
= 177*16 or 2,833
= 2,832/7200 = 39%
I know I am doing something wrong but cannot figure out how to solve this with the given information. I would appreciate your help. Thank you very much!
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