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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:

Quadra-

A prefix meaning four or fourfold, used to describe quantities or units.

Within

Inside or not further than a certain area, time period, or range.

Endo-

A prefix meaning "inside," "within," or "internal."

-cidal

A suffix indicating a substance or agent that kills or destroys a specified type of organism, such as bactericidal, which kills bacteria.