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Question 1: If the target selling price is $120 and the target profit margin is a 40 per cent mark-up on cost, what is the target cost?
A. $48
B. $72
C. $85.70
D. $34.30
Question 2: Beaufort Ltd is introducing a new range of products. It has established that the target selling prices of the three products are $120, $150 and $210. Beaufort requires a profit mark-up on cost of 33.3 per cent for all its products. What percentage of the target prices is the target cost in each case?
A. 50%
B. 60%
C. 66.7%
D. 75%
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