Please answer Part D only! The wing is Blossom Company\'s income statement e pas

Question

Please answer Part D only!

The wing is Blossom Company's income statement e past year Sales revenue Cost of goods sold 372,000 Gross margin Operating expenses110,000 Operating income $620,000 248,000 $138,000 What is the markup percentage on cost of goods sold? (Round answer to 0 decimal places, e.g. 45%.) Markup percentage Click if you would like to Show Work for this question Open Show Work What is the markup percentage on total cost? (Round answer to 0 decimal places, e.g 45%.) Markup percentage Click if you would like to Show Work for this Open Show our answer is correct. What is the gross margin percentage? (Round answer to 0 decimal places, e.g. 45%.) s margin percentage Click if you would like to Show Work for this question Open Show If the company wants to sell a new product that costs $44 wholesale while keeping the same markup structure, what will be the price of the new product? (Use the gross margin percentage and round final answer to 0 decimal places, e.g. 25,000.) Price of the new product Click if you would like to Show Work for this question

Explanation / Answer

Markup % on Cost of goods sold = (Gross margin/Cost of goods sold) x 100

= (248000/372000) x 100 = 66.67%

Markup % on Total cost = (Gross margin/Total cost) x 100

= (248000/(372000+110000)) x 100 = 51.45%

Gross margin % = (Gross margin/Sales revenue) x 100

= (248000/620000) x 100 = 40%

Price of the new product = 44 x 100/(100-40) = $73.33

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