At a Certain Level of Operations, Per Unit Costs and Selling

question 46

Multiple Choice

At a certain level of operations, per unit costs and selling price are as follows: manufacturing costs, $50; selling and administrative expenses, $10; selling price, $80. Given this information, the mark-on percentage to manufacturing cost used to determine selling price must have been:

• A)40 percent.
• B)60 percent.
• C)33 percent.
• D)25 percent.

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Definitions:

Payroll

The total amount paid to employees for services they provided during a certain period.

Double Time

A pay rate that is twice the employee's regular hourly rate, often applied for working on holidays or overtime.

Cumulative Earnings

The total amount of net income earned by an individual or entity over a period, often used in the context of calculating pensions or other benefits.

Accrued Vacation Pay

The amount of vacation time that employees have earned but not taken, often calculated to represent a financial liability for the employer.