Given that the selling price is $200, the variable unit cost is $120, and there's operating income of $50, what is the company's markup percentage?

Question

Quizplus · Accepted Answer

The markup percentage is calculated based on the cost, not the selling price. The markup is found by subtracting the cost from the selling price and then dividing by the cost. Here, the markup is ($200 - $120) / $120 = $80 / $120 = 0.6667, or 66.7%.

Given That the Selling Price Is $200, the Variable Unit