Answer:
b 43.50%
Explanation:
Product Cost = Variable Manufacturing Costs + Fixed Manufacturing Cost
Product Cost = 40,000*($7.00 + $11.00 + $3.00) + $80,000
Product Cost = 40,000*$21 + $80,000
Product Cost = $840,000 + $80,000
Product Cost = $920,000
Markup = Total Selling and Administrative Expenses + Desired Profit
Markup = $2.00*40,000 + $140,000 + $1,200,000*15%
Markup = $80,000 + $140,000 + $180,000
Markup = $400,000
Markup percentage = Markup / Product Cost * 100
Markup percentage = $400,000 / $920,000 * 100
Markup percentage = 0.434783 * 100
Markup percentage = 43.47%
