Alfredo Co The Markup Percentage Is 120

question 12

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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