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andreyandreev [35.5K]
3 years ago
5

Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawnmower has a total cost of $230 per u

nit, of which $160 is product cost and $70 is selling and administrative expenses. In addition, the total cost of $230 is made up of $120 variable cost and $110 fixed cost. The desired profit is $58 per unit. Determine the markup percentage on product cost.
Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer:

80%

Explanation:

The computation of markup percentage on product cost is shown below:-

Markup percentage on product cost = ((Selling and administrative expenses + Desired profit) ÷ Product cost) × 100

= (($70 + $58) ÷ $160) × 100

= 0.8

or

= 80%

Therefore for computing the markup percentage on product cost we simply applied the above formula.

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