The Swan Company produces its product at a total cost of 43

The Swan Company produces its product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit and the desired profit is $20 per unit. Determine the markup percentage on product cost.

a. 70%

b. 46.5%

c. 110%

d. 80%

Solution

the markup percentage on product cost.=$20/30-8=80%