ACCA PM · Chapter 3 · Question 1 of 9
A company plans to launch a product at a market price of $80. It requires a profit margin of 25% of the selling price. The current estimated cost of the product is $68 per unit. What is the cost gap per unit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $8
Explanation
Target cost = selling price - required profit = $80 - (25% x $80) = $60. Cost gap = estimated cost - target cost = $68 - $60 = $8 per unit.
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