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10 August, 10:37

Calculate the cost advantage index if the percentage cost of goods sold by the business is 40% and the average percentage cost of goods sold by its top three competitors are 50%, 60%, and 70%, respectively.

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  1. 10 August, 10:47
    0
    66.67

    Explanation:

    Given:

    Percentage cost of goods sold = 40%

    Cost of goods sold by 3 competitors = 50%, 60%, 70%

    Cost advantage index = ?

    Computation or average Cost of goods sold = (50% + 60% + 70%) / 3

    = 60%

    Cost advantage index = [Percentage cost of goods sold x 100] / Average Cost of goods sold

    = (40% x 100) / 60%

    = 66.67
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