When gross margin pricing is used,the markup percentage includes
A)desired profits plus total selling,general,and administrative expenses.
B)only the desired profit factor.
C)total costs and expenses.
D)desired profits plus total fixed production costs plus total selling,general,and administrative expenses.

Question

Quizplus · Accepted Answer

Gross margin pricing involves adding a markup to the cost of goods sold to cover desired profits and total selling, general, and administrative expenses. This approach ensures that all costs are covered, and a profit is achieved.

When Gross Margin Pricing Is Used,the Markup Percentage Includes