A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job?
A. Rs 489
B. Rs 606
C. Rs 996
D. Rs 1300
Answer: Option A
Prime cost =1690-30%-694
I didn't understand. Isn't it Margin instead of mark up? The question said " adding 30% to cost not 30% of cost"?
Right ans
selling price=cost+profit percentage
1690=100%+30%
cost=100/130*1690
=1300
1300-0verheadexpenses=answer
1300-694= 606
selling price=cost+profit percentage
1690=100%+30%
cost=100/130*1690
=1300
1300-0verheadexpenses=answer
Plz give me solution