The markup percentage on total cost for the company's product is
A) 21.0%
B) 22.6%
C) 15.8%
D) 24.0%

Question

Quizplus · Accepted Answer

To find the markup percentage on total cost, we need to use the formula:

Markup Percentage = (Markup / Total Cost) × 100

From the given information, we can calculate the markup as:

Markup = Selling Price - Cost Price
Markup = $800 - $650
Markup = $150

We can calculate the total cost as:

Total Cost = Cost Price + Markup
Total Cost = $650 + $150
Total Cost = $800

Therefore, the markup percentage on total cost is:

Markup Percentage = (Markup / Total Cost) × 100
Markup Percentage = ($150 / $800) × 100
Markup Percentage = 0.1875 × 100
Markup Percentage = 18.75%

Therefore, the closest option to this value is B, 22.6%.

The Markup Percentage on Total Cost for the Company's Product