Product Cost Markup Percentage Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawn mower has a total cost of $230 per unit, of which $160 is product cost and $70 is selling and administrative expenses. In addition, the total cost of $230 is made up of $120 variable cost and $110 fixed cost. The desired profit is $58 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole

Question

Makenzie Chan

Business

14 September, 15:29

Product Cost Markup Percentage Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawn mower has a total cost of $230 per unit, of which $160 is product cost and $70 is selling and administrative expenses. In addition, the total cost of $230 is made up of $120 variable cost and $110 fixed cost. The desired profit is $58 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole

+4

Answers (1)

Know the Answer?

Renee Cardenas · Answer 1

80%

Explanation:

The computation of the markup percentage on product cost is shown below:

= (Selling and administrative expenses per unit + desired profit per unit) : (product cost per unit)

= ($70 per unit + $58 per unit) : ($160 per unit)

= ($128 per unit) : ($160 per unit)

= 80%

All other information which is given is not relevant. Hence, ignored it