Product Cost Markup Percentage Crescent Lighting Inc. produces and sells lightin

Question

Product Cost Markup Percentage Crescent Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $66 per unit, of which $33 is product cost and $33 is selling and administrative expenses. In addition, the total cost of $66 is made up of $39 variable cost and $27 fixed cost. The desired profit is $6 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole number. 125 X % Feedback Check My Work Divide the desired profit plus the selling and administrative expense by the total product cost. Learning Objective 2.

Explanation / Answer

Mark up percentage on product costs = (Desired Profit + Selling & admin expenses) / Total Product cost

= ( $6 + $33 ) / $33 = 118 %

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