Use the following information for questions
Red Grass Company produces high definition television sets. The following information is available for this product: $$\begin{array} { l r }
\text { Fixed cost per unit } & \$ 250 \
\text { Variable cost per unit } & 750 \
\text { Total cost per unit } & 1,000 \
\text { Desired ROl per unit } & 300
\end{array}$$
-Red Grass Company's markup percentage would be
A)30%.
B)40%.
C)60%.
D)120%.

Question

Use the following information for questions 
Red Grass Company produces high definition television sets. The following information is available for this product: $$\begin{array} { l r } 
\text { Fixed cost per unit } & \$ 250 \
\text { Variable cost per unit } & 750 \
\text { Total cost per unit } & 1,000 \
\text { Desired ROl per unit } & 300
\end{array}$$
-Red Grass Company's markup percentage would be
A)30%.
B)40%.
C)60%.
D)120%.

Quizplus · Accepted Answer

Markup percentage = (Desired ROI per unit / Total cost per unit) * 100= (300 / 1,000) * 100= 30%

Use the Following Information for Questions Red Grass Company

Use the Following Information for Questions
Red Grass Company