Which of the following formulas represents the markup percentage on total cost?
A) Target profit / annual volume.
B) Target profit / (annual volume * total cost per unit).
C) (Annual volume * total cost per unit) /target profit.
D) Target profit /variable cost.
E) (Target profit * total cost per unit) / annual volume.

Question

Quizplus · Accepted Answer

Markup percentage on total cost is calculated by dividing the target profit by the total cost, which is represented by option B: Target profit / (annual volume * total cost per unit).

Which of the Following Formulas Represents the Markup Percentage on Total