Asked by
Apolosi Matani
on Oct 23, 2024Verified
Which of the following formulas represents the mark-up percentage on full cost?
A) Mark-up % = target profit / (annual volume total cost per unit)
B) Mark-up % = target profit total cost per unit
C) Mark-up % = target profit annual volume
D) Mark-up % = (target profit total cost per unit) / annual volume
Full Cost
The total cost of production, encompassing direct and indirect costs.
Mark-Up Percentage
The proportion of cost added to the selling price over the actual cost to achieve profit.
Target Profit
The amount of net income a company aims to achieve within a specific period as part of its financial and operational goals.
- Apply cost-plus pricing frameworks to determine the pricing structure for products.
Verified Answer
VG
Learning Objectives
- Apply cost-plus pricing frameworks to determine the pricing structure for products.
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