Consolidated Corporation had the following information: $$\begin{array} { l r r }
\text { Revenues } & & \$ 250,000 \
\text { Cost of goods sold: } & \
\quad \text { Direct materials } & \$ 50,000 & \
\quad \text { Direct labor } & 37,500 & \
\quad \text { Overhead } & 62,500 & 150,000 \
\text { Gross profit } & & \$ 100,000 \
\text { Selling and administrative expenses } & & 37,500 \
\text { Operating income } & \$ 62,500 \
\hline
\end{array}$$
What is the markup based on materials?
A)71.4%
B)185.7%
C)42.9%
D)400.0%

Question

Consolidated Corporation had the following information: $$\begin{array} { l r r } 
\text { Revenues } & & \$ 250,000 \
\text { Cost of goods sold: } & \
\quad \text { Direct materials } & \$ 50,000 & \
\quad \text { Direct labor } & 37,500 & \
\quad \text { Overhead } & 62,500 & 150,000 \
\text { Gross profit } & & \$ 100,000 \
\text { Selling and administrative expenses } & & 37,500 \
\text { Operating income } & \$ 62,500 \
\hline
\end{array}$$
What is the markup based on materials?
A)71.4%
B)185.7%
C)42.9%
D)400.0%

Quizplus · Accepted Answer

The Answer of Consolidated Corporation had the following information: $$\begin{array} { l r r } 
\text { Revenues } & & \$ 250,000 \
\text { Cost of goods sold: } & \
\quad \text { Direct materials } & \$ 50,000 & \
\quad \text { Direct labor } & 37,500 & \
\quad \text { Overhead } & 62,500 & 150,000 \
\text { Gross profit } & & \$ 100,000 \
\text { Selling and administrative expenses } & & 37,500 \
\text { Operating income } & \$ 62,500 \
\hline
\end{array}$$
What is the markup based on materials?
A)71.4%
B)185.7%
C)42.9%
D)400.0%

Consolidated Corporation Had the Following Information What Is the Markup Based on Materials? A)71

Consolidated Corporation Had the Following Information What Is the Markup Based on Materials?
A)71