Use This Information for Swan Company to Answer the Questions

question 120

Multiple Choice

Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-Determine the markup percentage on variable cost.

• A) 100%
• B) 110%
• C) 80%
• D) 46.5%

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Definitions:

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, including acquiring assets and launching new ventures.

Liquidating Dividend

A payment made by a corporation to its shareholders from its capital rather than its earnings, often signaling the winding down or dissolution of the company.

Cash Payment

A transaction in which goods or services are paid for with physical currency or through an immediate electronic funds transfer.

Firm's Assets

The economic resources owned by a business, including cash, property, equipment, and intellectual property, which are used to generate revenue.