The Swan Company produces their product at a total cost of $43 per unit. Of this amount $8 per unit is selling and administrative costs. The total variable cost is $30 per unit The desired profit is $20 per unit. Determine the mark up percentage on product cost.
A) 80%
B) 46.5%
C) 70%
D) 110%

Question

Quizplus · Accepted Answer

The product cost is $43 - $8 = $35 per unit. The desired profit is $20 per unit. The markup percentage is calculated as ($20 / $25) * 100% = 80%.

The Swan Company Produces Their Product at a Total Cost