Red Grass Company produces high definition television sets.The following information is available for this product: $$\begin{array} { l r }
\text { Fixed cost per unit } & \$ 250 \
\text { Variable cost per unit } & 750 \
\text { Total cost per unit } & 1,000 \
\text { Desired ROl per unit } & 300
\end{array}$$
- Red Grass Company's markup percentage would be
A)30%.
B)40%.
C)60%.
D)120%.

Question

Red Grass Company produces high definition television sets.The following information is available for this product: $$\begin{array} { l r } 
\text { Fixed cost per unit } & \$ 250 \
\text { Variable cost per unit } & 750 \
\text { Total cost per unit } & 1,000 \
\text { Desired ROl per unit } & 300
\end{array}$$
- Red Grass Company's markup percentage would be
A)30%.
B)40%.
C)60%.
D)120%.

Quizplus · Accepted Answer

Markup percentage = (Desired ROI per unit / Total cost per unit) * 100= (300 / 1,000) * 100= 30%

Red Grass Company Produces High Definition Television Sets - Red Grass Company's Markup Percentage Would Be A)30

Red Grass Company Produces High Definition Television Sets - Red Grass Company's Markup Percentage Would Be
A)30