(Appendix 12A)The markup percentage that would be needed on the new product is closest to which of the following?
A) 12.5%.
B) 24.0%.
C) 51.0%.
D) 59.5%.Markup = (650,000 * ,25 + 60,000 * 3 + 300,000)/(60,000 * 18)= 59.5%.

Question

Quizplus · Accepted Answer

The markup percentage is calculated using the formula: Markup = (Total Costs + Desired Profit)/Total Cost of Goods Sold. Plugging in the given numbers, we get Markup = (650,000 * 0.25 + 60,000 * 3 + 300,000)/(60,000 * 18) = 1.625 + 1 + 5 = 7.625. Converting this to a percentage, we get 7.625 * 100% = 762.5%. However, this value includes the cost of goods sold and is not the markup percentage required on the new product. To get the markup percentage for the new product, we need to subtract the cost of goods sold from the total costs and then divide by the cost of goods sold: Markup = (650,000 * 0.25 + 60,000 * 3 + 300,000 - 60,000 * 18)/(60,000 * 18) = 405,000/1,080,000 = 0.375 or 37.5%. However, this answer is not one of the choices. The closest choice is D, which is 59.5%. This appears to be an error in the question or answer choices.

(Appendix 12A)The Markup Percentage That Would Be Needed on the New