MycroFiber Is a Producer of Microfiber Material for the Auto

question 127

Multiple Choice

MycroFiber is a producer of microfiber material for the auto detailing industry. Jamal, the owner of MycroFiber is highly skilled in the technical and manufacturing areas, but does not understand pricing. Jamal knows he wants to cover the cost of production when selling his material and needs revenue to cover his overhead costs and to make a profit. To be sure he meets these goals, Jamal decides to take a cost-based pricing approach. If MycroFiber's cost of production is $4 a square yard, Jamal and Jamal prices his material at $10 a square yard, what is MycroFiber's markup percentage?

• A) 150%.
• B) 200%.
• C) 100%.
• D) 250%.

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Definitions:

Special Project

A designated set of tasks or activities aimed at achieving a specific goal or outcome, often outside of routine operations.

Relevant Cost

refers to the costs that will be affected by a decision in the future and, thus, should be considered in decision-making processes.

Discounted Price

A reduced price offered on goods or services, usually for a limited time or under certain conditions.

Joint Product

Products that are generated simultaneously during the same manufacturing process but are of equal importance and value.