A DVD Player That Costs $168 Sells for a 30

question 48

Multiple Choice

A DVD player that costs $168 sells for a 30% markup based on the cost. What is the selling price of the DVD player?

• A) $560.00
• B) $50.40
• C) $129.23
• D) $218.40

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a product.

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.

Net Operating Income

This is the total profit of a business after operating expenses are subtracted from gross revenue but before taxes and interest expenses are deducted.

Absorption Costing

A method of product costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.