Use the Following Information for Questions
Red Grass Company

question 13

Multiple Choice

Use the following information for questions
Red Grass Company produces high definition television sets and uses total cost-plus pricing.The following information is available for this product:
$$\begin{array} { l l } \text { Fixed cost per unit } & \$ 100 \\\text { Variable cost per unit } & 300 \\\text { Total cost per unit } & 400 \\\text { Desired ROl per unit } & 140\end{array}$$
-Red Grass Company's markup percentage would be

• A)140%.
• B)75%.
• C)40%.
• D)35%.

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Definitions:

External Auditor

An independent third party hired to examine the financial statements of an entity to ensure accuracy and adherence to accounting standards.

Internal Control System

A set of procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cost-Benefit

An analysis or assessment comparing the costs and benefits of a decision or project to determine its feasibility or worthiness.

Human Error

Mistakes made by individuals in performing tasks or making decisions, often leading to deviations from intended outcomes or processes.