Asked by Kaleb Shamburg on May 07, 2024
Verified
Assume markup percentage equals desired profit divided by total costs.What is the correct calculation to determine the dollar amount of the markup per unit?
A) Total cost times markup percentage.
B) Total cost per unit times markup percentage per unit.
C) Total cost per unit divided by markup percentage per unit.
D) Markup percentage per unit divided by total cost per unit.
E) Markup percentage divided by total cost.
Markup Percentage
The percentage added to the cost price of goods to cover overhead and profit.
Dollar Amount
a numerical value representing a sum of money.
- Calculate markup percentages and price determination based on total costs.
Verified Answer
BS
Braham SinghMay 13, 2024
Final Answer :
B
Explanation :
To determine the dollar amount of the markup per unit, you need to multiply the total cost per unit by the markup percentage per unit. This will give you the amount of profit you want to make on each unit sold.
Learning Objectives
- Calculate markup percentages and price determination based on total costs.