The following per unit information is available for a new product of Blue Ribbon Company who uses total cost-plus pricing: $$\begin{array} { l l }
\text { Desired ROl } & \$ 15 \
\text { Fixed cost } & 50 \
\text { Variable cost } & 100 \
\text { Total cost } & 150 \
\text { Selling price } & 165
\end{array}$$ Blue Ribbon Company's markup percentage would be
A)9%.
B)10%.
C)30%.
D)65%.

Question

The following per unit information is available for a new product of Blue Ribbon Company who uses total cost-plus pricing: $$\begin{array} { l l } 
\text { Desired ROl } & \$ 15 \
\text { Fixed cost } & 50 \
\text { Variable cost } & 100 \
\text { Total cost } & 150 \
\text { Selling price } & 165
\end{array}$$ Blue Ribbon Company's markup percentage would be
A)9%.
B)10%.
C)30%.
D)65%.

Quizplus · Accepted Answer

The markup percentage is calculated as (Selling Price - Total Cost) / Total Cost * 100. Here, it is (165 - 150) / 150 * 100 = 10%.

The Following Per Unit Information Is Available for a New