The Swan Company produces its product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit and the desired profit is $20 per unit.
Determine the markup percentage on total cost.
A) 100%
B) 110%
C) 80%
D) 46.5%

Question

Quizplus · Accepted Answer

Markup percentage on total cost = (Desired profit / Total cost) x 100= (20 / 43) x 100= 46.51%

The Swan Company Produces Its Product at a Total Cost