Working capital urgent

they have rightly calculated the cash cost of export sales.

lets present it in some different manner. export sale price is 10% less than domestic sale price. that means if domestic selling price is 100 than export price is 90.

so if we convert the export sales into domestic price the figure would be

(1080000/90)*100 = 1200000

and we deduct 20 % margin from this then cost of export sales comes to

1200000*80% = 960000

 WHY ARE WE TRYING TO CONVERT EXPORT SALES TO DOMESTIC SALEES

we are not converting export sale into domestic sales. we just try to find out the gross margin % on export sale so that we can calculate the cost of export sale. so as per the given question linking is necessary between domestic sale and export sale to find out the cost of export sale

thanks ashish

but why r we doing this sum on cash cost basis.i mean it is nowhere mentioned in the question??

somebody pls reply!!

U may solve on total basis also.