Answer:
Option (c) is correct.
Explanation:
Given that,
Sales = $30,000
Direct materials = $6,300
Direct labor = $4,100
Variable factory overhead = $3,700
Fixed factory overhead = $5,600
Variable selling and administrative costs = $2,400
Fixed selling and administrative costs = $3,200
Total variable cost:
= Direct Material + Direct labor + Variable factory overhead + Variable selling and administrative costs
= $6,300 + $4,100 + $3,700 + $2,400
= $16,500
Total fixed cost:
= Fixed factory overhead + Fixed selling and administrative costs
= $5,600 + $3,200
= $8,800
Total cost = Fixed cost + Variable cost
= $8,800 + $16,500
= $25,300
Profit = Sales - Total cost
= $30,000 - $25,300
= $4,700
Mark Up as percentage of cost:
= (Profit ÷ cost) × 100
= ($4,700 ÷ $25,300) × 100
= 18.6%
