by Baltuilhe » Mon Jul 08, 2019 9:29 pm
Good night!
C = cost
P = profit
R = revenue
[tex]R=C+P[/tex]
We have:
(I) 6% on Revenue:
[tex]6\%\cdot R\Rightarrow 0,94R=0,94(C+P)=R'[/tex]
(II) 15% on Profit:
[tex]15\%\cdot P\Rightarrow C+0,85P=R'[/tex]
We want 15% on Profit better than 6% on Revenue, right?
So:
[tex]C+0,85P>0,94C+0,94P\\
C-0,94C>0,94P-0,85P\\
0,06C>0,09P\\
C>1,5P[/tex]
So, if [tex]C=1,5P[/tex]:
[tex]C+P=1,5P+P=2,5P[/tex]
Calculating [tex]\dfrac{C}{R}=\dfrac{1,5P}{2,5P}=60\%[/tex]
So, if [tex]C>60\%\cdot R[/tex] it's more interesting to go with the 15%.
I hope to have helped!