Use the following information for questions
Papillon Co. has determined the following per unit amounts: $\begin{array}{lrlr}
\text { Direct materials } & \$ 30 & \text { Fixed selling and administrative } & \$ 60 \
\text { Direct labor } & 36 & \text { Variable overhead } & 24 \
\text { Desired ROI } & 33 & \text { Variable selling and administrative } & 15 \
\text { Fixed overhead } & 45 & &
\end{array}$
-The markup percentage using the variable-cost approach is
A) 131%.
B) 102%.
C) 90%.
D) 80%.

Question

Quizplus · Accepted Answer

The variable-cost approach for calculating the markup percentage involves adding all variable costs and the desired ROI, then dividing by the total variable costs. Variable costs include direct materials ($30), direct labor ($36), variable overhead ($24), and variable selling and administrative expenses ($15). The total variable costs are $30 + $36 + $24 + $15 = $105. The desired ROI is $33. The markup percentage is calculated as $\frac{105 + 33}{105} \times 100 = 131%$.

Use the Following Information for Questions Papillon Co -The Markup Percentage Using the Variable-Cost Approach Is A) 131

Use the Following Information for Questions
Papillon Co -The Markup Percentage Using the Variable-Cost Approach Is
A) 131