Beaufort Ltd Is Introducing a New Range of Products

question 24

Multiple Choice

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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Definitions:

Total Assets

The sum of all resources owned by a company, valued in monetary terms, including both current and non-current assets.

Total Liabilities

The combined amount of all debts and obligations owed by a business, including loans, accounts payable, and other financial liabilities.

Total Revenue

The total amount of money received by a company from its various activities before any expenses are subtracted.

Accrued Salaries

Salaries that have been incurred but not yet paid to employees by the end of a financial period.