Question

Dark Coral Company manufactures a wide variety of customized products. During June, Dark Coral worked on Job 25. Total cost of Job 25 amounted to $9,000. During June, this job was completed and sold at 120 percent of cost.

Calculate the price and the gross margin for Job 25.

Answer 1

To find the price and gross margin for Job 25, multiply the total cost by 120 percent to get the selling price, and then subtract the cost from the selling price to get the gross margin.

Step-by-step explanation:

To calculate the price and gross margin for Job 25, we need to find the selling price and subtract the total cost of the job.The total cost of Job 25 is $9,000. To find the selling price, we multiply the cost by 120 percent (or 1.2) to account for the 20 percent markup. So the selling price of Job 25 is $9,000 x 1.2 = $10,800.The gross margin is the difference between the selling price and the cost. So the gross margin for Job 25 is $10,800 - $9,000 = $1,800.