Qualification > Commerce

Accounting AS level doubt!

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Tohru Kyo Sohma:
ok.....i have a doubt here...in the mark scheme for accounting p2...they show mark on side by indication a 1 there......but beside some they show 1of.....does this mean that if we get it wrong we get a negative marking!!!
pls help someone! :-[

Tohru Kyo Sohma:
ok....i understood....i cleared my own doubt.......CAN ANYONE EXPLAIN MARK UP AND MARKGIN TO ME???
pls!! :( :( :(

Dasith:
OF = own figure , so u get a mark watever u r ans is there & u will not be penalised there after for that figure !

Mark up = Its a % calculated cost of sales to obtain profit(desired profit by company)
Margin  = Its a % calculated on Sales (to obtain profit)

example -
 MARK UP-

COST OF SALES = 1000
MARK UP =20%

Then profit = 1000 x 20 /100
=200

MARGIN-

MARGIN = 20 %

Then Profit =
1000/80 x 20 =250

Dasith:
hmm i think u didnt get the margin thing,, i'll explain in a mathematical way since u do maths ;D

Since margin is % on sales & we are given cost of sales & told to find profit.(which they say margin is 20 % )

So if we take sales as S

S x 80 % will be cost of sales i.e (  0.8S   )
S x 20% will be profit(  0.2S )

& we are not given sales but cost of sales ....

so cost of sales will be 80 % of sales S x .8 = Cost of sales (0.8S)
& sales will be 100 %            i.e   1000/0.8S = S

SO u can either obtain sales & get profit or straigt away get profit like the one i did before :D

hope u get it

Tohru Kyo Sohma:

--- Quote from: Dasith on May 23, 2011, 02:44:15 am ---so cost of sales will be 80 % of sales S x .8 = Cost of sales (0.8S)
& sales will be 100 %            i.e   1000/0.8S = S

SO u can either obtain sales & get profit or straigt away get profit like the one i did before :D

hope u get it

--- End quote ---
what is that 1000 figure again???
this mark up and margin is killing me!!
thanks alot dasith! ;D

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