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 total cost.
A) 100%
B) 110%
C) 80%
D) 46.5%

Question

Quizplus · Accepted Answer

The total cost per unit is $43, and the desired profit is $20 per unit. The markup percentage is calculated as (Desired Profit / Total Cost) * 100 = ($20 / $43) * 100 = 46.5%.

The Swan Company Produces Their Product at a Total Cost