In the cost-plus method of pricing, a markup percentage is computed by dividing the per unit return on investment (ROI) by the
A) variable cost per unit.
B) fixed cost per unit.
C) total manufacturing overhead cost per unit.
D) total cost per unit.

Question

Quizplus · Accepted Answer

In the cost-plus method of pricing, the markup percentage is calculated by dividing the desired return on investment (ROI) by the total cost per unit, which includes both variable and fixed costs.

In the Cost-Plus Method of Pricing, a Markup Percentage Is