A product's mark-up percentage needs to cover operating profits when the cost base is:

Question

Quizplus · Accepted Answer

The mark-up percentage on a product needs to cover operating profits regardless of whether the cost base is considered as variable manufacturing costs, the full cost of the product, or just the variable cost of the product. Each of these cost bases impacts the pricing strategy and the calculation of the mark-up needed to ensure profitability.

A Product's Mark-Up Percentage Needs to Cover Operating Profits When