Question

1 What do customers do to check the cost of their goods? . [1] 2 Where did Helen get the idea of selling plastic-free products? I . [1] 3 How did Helen find out if people in her town were interested in a plastic-free shop? .. [1] 4 Why does Helen prefer to order stock from nearby suppliers? - [1] 5 How did Helen get enough money to open the shop? [1] 6 Who helped Helen to make the furniture for her shop? [1] 7 What did Helen do to promote her new shop on its first day? Give two details. 2]​

Answer 1

Explanation:

Once you're ready to calculate a price, take your total variable costs, and divide them by 1 minus your desired profit margin, expressed as a decimal. For a 20% profit margin, that's 0.2, so you'd divide your variable costs by 0.8.

Answer 2

Explanation:

Here is how you calculate it:

Direct costs margin = Sales price – Total direct costs.

Direct costs margin % = Direct costs margins / Sales price x 100%

Break-even volume = (Fixed costs / Direct cost margin %) / Selling price.

Break-even price = Direct costs / unit + Fixed costs / volume.