What is the firm's markup cost if the price it is charging is $50 and the fully allocated average cost is $40?
A) 10 percent
B) 15 percent
C) 20 percent
D) 25 percent

Name: What is the firm's markup cost if the price it is charging is $50 and the fully allocated average cost is $40? A) 10 percent B) 15 percent C) 20 percent D) 25 percent
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The markup cost is calculated as (Price - Cost) / Cost. Here, it is ($50 - $40) / $40 = $10 / $40 = 0.25 or 25%.

What Is the Firm's Markup Cost If the Price It