A product's markup percentage needs to cover operating profits when the cost base is:
A)the full cost of the product
B)the variable cost of the product
C)variable manufacturing costs
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

A product's markup percentage needs to cover operating profits regardless of the cost base. Whether the cost base is the full cost of the product, the variable cost of the product, or variable manufacturing costs, the markup percentage must cover operating profits to ensure the business remains profitable. Therefore, all options are correct.

A Product's Markup Percentage Needs to Cover Operating Profits When