The following costs relate to Southern Company: Variable manufacturing cost,$30;variable selling and administrative cost,$8;applied fixed manufacturing overhead,$15;and allocated fixed selling and administrative cost,$4.If Southern uses total-cost pricing formulas,the company's markup percentage would be computed on the basis of:
A)$30.
B)$38.
C)$45.
D)$57.
E)some other amount.

Question

Quizplus · Accepted Answer

Total-cost pricing includes all variable and fixed costs. Therefore, the basis for markup is the sum of variable manufacturing cost ($30), variable selling and administrative cost ($8), applied fixed manufacturing overhead ($15), and allocated fixed selling and administrative cost ($4), totaling $57.

The Following Costs Relate to Southern Company: Variable Manufacturing Cost,$30;variable