Question

The normal selling price per unit of a product is $480, and its total cost per unit is $375. Using the total cost concept, calculate the markup per unit.

Answer 1

The markup per unit is $105

Step-by-step explanation:

The computation of the markup per unit is shown below:

Markup per unit is

= Normal selling price per unit - total cost per unit

= $480 - $375

= $105

We simply deduct the normal selling price per unit from the total cost per unit so the markup per unit could come

Hence, the markup per unit is $105 and the same is to be considered