Figure 10-4
Jamie Ltd -Refer to Figure 10-4

Figure 10-4
Jamie Ltd. had the following information: $\begin{array}{lll}\text { Revenues } & & £ 250,000 \\\text { Cost of goods sold: } & £ 50,000 & \\\text { Direct materials } & 37,500 & \\\text { Direct labour } & \underline{62,500} & \underline{150,000} \\\quad \text { Overhead } & & \mathbb{£ 1 0 0 , 0 0 0} \\\text { Gross profit } & & \underline{37,500} \\\text { Selling and administrative expenses } & & £ 62,500\end{array}$

-Refer to Figure 10-4. What would be the price for something that has a cost of £500, assuming that the mark up is based on cost of goods sold?

A) £833
B) £625
C) £708
D) £2,000