Exhibit 22-7 West Star Company is planning to market a new computer and must decide on a proper selling price. The following cost information for the manufacture of one computer has been compiled:
Refer to Exhibit 22-7. If the selling price is set at $400 and only variable costs are considered in the pricing decision, what is the markup percentage based on selling price?
A) 25%
B) 30%
C) 40%
D) 50%
Correct Answer:
Verified
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