When using markup pricing,which of the following formulas determines the selling price?
A) Price = Average unit cost divided by Markup percentage
B) Price = Average unit cost divided by 1 minus Markup percentage
C) Price = Unit cost minus Markup price
D) Price = Total fixed costs divided by Unit price minus Unit variable cost

Question

Quizplus · Accepted Answer

Markup pricing formula is Price = Average unit cost divided by 1 minus Markup percentage. This formula calculates the selling price by dividing the average unit cost by the difference between 1 and markup percentage, which results in a markup amount that is added to the average unit cost to determine the selling price.

When Using Markup Pricing,which of the Following Formulas Determines the Selling