The Income Statement of Cadmium Inc Determine the Markup Based on Cost of Goods Sold (COGS)

question 52

Multiple Choice

The income statement of Cadmium Inc., for the month of January of the current year is as follows: $\begin{array}{lr}\text { Revenues }&&\$12,000\\\text { Cost of goods sold: }\\\text { Direct materials } & \$ 6,000 \\\text { Direct labor } & 4,000 \\\text { Overhead } & 2,000&\$12,000\\\text { Gross profit } && \$ 9,000 \\\text { Selling and administrative expenses } && 2,000 \\\text { Onerating income } && \$ 7,000\end{array}$
Determine the markup based on cost of goods sold (COGS) .

• A)75%
• B)50%
• C)100%
• D)95%