The Following Per Unit Information Is Available for a New

question 65

Multiple Choice

The following per unit information is available for a new product of Blue Ribbon Company who uses total cost-plus pricing: $$\begin{array} { l l } \text { Desired ROl } & \$ 15 \\\text { Fixed cost } & 50 \\\text { Variable cost } & 100 \\\text { Total cost } & 150 \\\text { Selling price } & 165\end{array}$$ Blue Ribbon Company's markup percentage would be

• A)9%.
• B)10%.
• C)30%.
• D)65%.

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Definitions:

Physical Units

Measurements or quantities of items not based on value or price but on physical count or volume.

Velocity

The rate at which money circulates in an economy, calculated as the ratio of nominal GDP to the money supply.

Price Level

A measure of the average prices of goods and services in an economy at a specific point in time.

Quantity Equation

The equation M × V = P × Y, which relates the quantity of money, the velocity of money, and the dollar value of the economy’s output of goods and services.