What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 160%?
A)$150.
B)$384.
C)$390.
D)$624.
E)Some other amount.

Question

Quizplus · Accepted Answer

Cost-plus pricing involves adding a markup to the total variable cost. If the total variable cost is $240, a 160% markup would be $240 * 1.6 = $384. Adding this to the original cost gives $240 + $384 = $624.

What Price Will the Company Charge If the Firm Uses