Blue Lights Co ? If the Amount of Desired Profit Is $285,000, Calculate

question 31

Multiple Choice

Blue Lights Co.uses the total cost concept of applying the cost-plus approach to product pricing.The costs of producing and selling 7,700 units are as follows: $\begin{array}{lr}\text {Fixed factory overhead cost }&\$60,000\\\text {Fixed selling and administrative costs }&120,000\\\text { Variable direct materials cost per unit}&80\\\text {Variable direct labor cost per unit }&150\\\text {Variable factory overhead cost per unit }&50\\\text {Variable selling and administrative cost per unit }&30\\\end{array}$
? If the amount of desired profit is $285,000, calculate the total cost markup percentage per unit.(Round answer to two decimal places)

• A) 9.30%
• B) 11.10%
• C) 15.70%
• D) 12.86%

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Definitions:

Steady-State Concentration

The concentration of a substance in a system where its rate of input and rate of process removal are equal.

Medical Dosages

The prescribed amount of medication to be taken by a patient, usually measured in terms of quantity or concentration.

Dosage Interval

The time between doses of a medication, critical for maintaining the therapeutic level of the drug in the bloodstream.

Drug Half-life

The drug half-life is the time required for the concentration of a drug in the body to be reduced by half, reflecting the drug's duration of action.