Ask Question
27 February, 14:05

Light Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $180 per unit, of which $100 is product cost and $80 is selling and administrative expenses. In addition, the total cost of $180 is made up of $110 variable cost and $70 fixed cost. The desired profit is $45 per unit.

1. Determine the markup percentage on product cost. Round the answer to nearest whole number.

+4
Answers (1)
  1. 27 February, 17:38
    0
    Total mark up = 45%

    Explanation:

    Giving the following information:

    An entry light has a total cost of $180 per unit, of which $100 is product cost and $80 is selling and administrative expenses. Also, the total cost of $180 is made up of $110 variable cost and $70 fixed cost. The desired profit is $45 per unit.

    If $100 is the product cost, and $45 is the desired mark up:

    100=100%

    45=? = (45/100) = 0.45 = 45%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Light Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $180 per unit, of which $100 is product cost and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers