Alfredo Co The Markup Percentage Is 120

question 120

Multiple Choice

Alfredo Co.has collected the following per unit data: $$\begin{array} { l r l r } \text { Direct labor } & \$ 8 & \text { Variable selling and admin. } & \$ 3 \\\text { Direct materials } & 5 & \text { Fixed overhead } & 1 \\\text { Variable overhead } & 4 & \text { Fixed selling and admin. } & 7\end{array}$$ The markup percentage is 120%.What is the markup amount under the variable-cost approach?

• A)$21.60
• B)$24.00
• C)$20.40
• D)$33.60

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