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The Following Is Ralley Company's Income Statement

Question 200

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The following is Ralley Company's income statement. The following is Ralley Company's income statement.   Required:  a.What is the markup percentage on cost of goods sold? b.What is the markup percentage on total cost? c.What is the gross margin percentage? d.If the company wants to sell a new product that costs $48 wholesale while keeping the same markup structure, what will be the price of the new product? Required:
a.What is the markup percentage on cost of goods sold?
b.What is the markup percentage on total cost?
c.What is the gross margin percentage?
d.If the company wants to sell a new product that costs $48 wholesale while keeping the same markup structure, what will be the price of the new product?

Correct Answer:

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a.$218,000 ÷ $324,000 = 0.667 or 66.7%
b...

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