Question

Jamison Company produces and sells Product X at a total cost of $25 per unit, of which $15 is product cost and $10 is selling and administrative expenses. In addition, the total cost of $25 is made up of $14 variable cost and $11 fixed cost. The desired profit is $5 per unit. Determine the mark up percentage on total cost.

Answer 1

Markup percentage on total cost = 20%

Step-by-step explanation:

Markup percentage on total cost = Desired profit/Total cost

Markup percentage on total cost = $5/ $25

Markup percentage on total cost = 0.2

Markup percentage on total cost = 20%