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Swan Company produces a 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, and the desired profit is $20 per unit. Determine the markup percentage on variable cost.

Respuesta :

Answer:

110%

Explanation:

Data provided

Desired profit = $20

Total cost = $43

Total variable cost = $30

The calculation of the markup percentage on variable cost is shown below:-

Markup percentage on variable cost = Desired profit + (Total cost - Total variable cost) ÷ Total variable cost × 100

= (($20 + ($43 - $30) ÷ $30) × 100

= (($20 + $13) ÷ $30) × 100

= 110%

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