Assume markup percentage equals desired profit divided by total costs.What is the correct calculation to determine the dollar amount of the markup per unit?
A)Total cost times markup percentage.
B)Total cost per unit times markup percentage per unit.
C)Total cost per unit divided by markup percentage per unit.
D)Markup percentage per unit divided by total cost per unit.
E)Markup percentage divided by total cost.

Question

Quizplus · Accepted Answer

To determine the dollar amount of the markup per unit, you need to multiply the total cost per unit by the markup percentage per unit. This will give you the amount of profit you want to make on each unit sold.

Assume Markup Percentage Equals Desired Profit Divided by Total Costs