Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:

A table is given below. The table shows, the number of people who took their coffee and total billing for each of the 5 weeks. On the basis of this table give answers for the question given below. (Q-2).

Week        No of Guests     Total Billed Amount   
1 250 13000
2 300 15900
3 600 32600
4 450 23000
5 260 8500

What is the Gross Margin per unit of sale?

Options:

21.2

20.8

20.4

20

Correct Answer:

20

Explanation:

Gross Mrgin per Unit = Unit Price -Unit cost

Weighted average is the Unit Price for the Restaurant

Week        No of Guests                
Total Billed Amount
1 250 13000
2 300 15900
3 600 32600
4 450 23000
5 260 8500
Total 1860 93000
Weighted Average (Total Billed Amount/Total Guests i.e. 93000/1860) 50  

Unit cost refers to variable cost (also referred to as cost of goods sold).

Total Variable cost= 60 % of 93000 =55800

Unit Cost = Total Variable Cost/ No of Guests= 55800/1860=30

Thus Gross Margin =50-30=Rs 20