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Figure 10-6
Multiple Products Co -Refer to Figure 10-6

Question 22

Multiple Choice

Figure 10-6
Multiple Products Co. has predicted the following costs for this year for 100,000 units:  Selling and  Manufacturing  Administrative  Variable £400,000£100,000 Fixed 600,000300,000 Total £1,000,000£400,000\begin{array}{lcc}&&\text { Selling and }\\&\text { Manufacturing }&\text { Administrative }\\\hline\text { Variable } & £ 400,000 & £ 100,000 \\\text { Fixed } & 600,000 & 300,000 \\\text { Total } & £ 1,000,000 & £ 400,000\end{array}
-Refer to Figure 10-6. What is the mark up on variable costs needed to achieve a target profit of £100,000?


A) 375 per cent
B) 275 per cent
C) 250 per cent
D) 200 per cent

Correct Answer:

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