The Lighting Factory produces two types of light fixtures to sell to consumers.Product A illuminates high-density lighting and Product B illuminates low-density lighting.The manager at the Lighting Factory reported the following information:

Required:
Compute the profit margin percentage for each product.
A)5.47%;6.42%
B)5.95%;6.66%
C)6.05%;6.75%
D)6.42%;6.85%
E)6.80%;6.92%

Question

The Lighting Factory produces two types of light fixtures to sell to consumers.Product A illuminates high-density lighting and Product B illuminates low-density lighting.The manager at the Lighting Factory reported the following information:

Required:
Compute the profit margin percentage for each product.

Required:
Compute the profit margin percentage for each product.
A)5.47%;6.42% 
B)5.95%;6.66% 
C)6.05%;6.75% 
D)6.42%;6.85% 
E)6.80%;6.92%

Quizplus · Accepted Answer

A)Product A: [($200,000 / $3,650,000)] = 5.47%
Product B: [($225,000 / $3,500,000)] = 6.42%

The Lighting Factory Produces Two Types of Light Fixtures to Sell