Question

Phoenix Company’s newest product has the following unit data: selling price $244, variable costs $140, and fixed costs $60. What is the markup percentage?

Answer 1

The correct answer is 22%.

Step-by-step explanation:

To calculate it, we must use the formula taking the sales value that is $ 244 minus the unit cost that is $ 200 ($140 + $60), between the sum of the variable costs and the fixed costs that is the same. This relationship is represented as follows:

$ 244 - 200 / (140 + 60) * 100 = 22%