Figure 10-6
Multiple Products Co -Refer to Figure 10-6

question 14

Multiple Choice

Figure 10-6
Multiple Products Co. has predicted the following costs for this year for 100,000 units: $\begin{array}{lcc}&&\text { Selling and }\\&\text { Manufacturing }&\text { Administrative }\\\hline\text { Variable } & £ 400,000 & £ 100,000 \\\text { Fixed } & 600,000 & 300,000 \\\text { Total } & £ 1,000,000 & £ 400,000\end{array}$
-Refer to Figure 10-6. What is the mark up on variable costs needed to achieve a target profit of £100,000?

• A)375 per cent
• B)275 per cent
• C)250 per cent
• D)200 per cent

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Definitions:

Dividends Payable

A liability recorded on a company's balance sheet representing the amount of dividends it owes to shareholders.

Retained Earnings

Profits that a company has decided to keep and reinvest in the business, rather than distribute to shareholders as dividends.

Contra-stockholders' Equity

An account that reduces the total amount of stockholders' equity, such as treasury stock or accumulated deficits.

Treasury Stock

Shares that were once a part of the float and sold but have since been repurchased by the issuing company and held in its treasury.