Use the Following Information for Questions
Custom Shoes Co -What Is the Markup Percentage?
A) 150%
B) 255%
C)

question 99

Multiple Choice

Use the following information for questions
Custom Shoes Co. has gathered the following information concerning one model of shoe: $\begin{array}{ll}\text { Variable manufacturing costs } & \$ 40,000 \\\text { Variable selling and administrative costs } & \$ 20,000 \\\text { Fixed manufacturing costs } & \$ 160,000 \\\text { Fixed selling and administrative costs } & \$ 120,000 \\\text { Investment } & \$ 1,700,000 \\\text { ROl } & 30 \% \\\text { Planned production and sales } & 5,000 \text { pairs }\end{array}$
-What is the markup percentage?

• A) 150%
• B) 255%
• C) 850%
• D) 182%

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Definitions:

Novelty Wear-Out Effect

A phenomenon where the effectiveness or appeal of something new diminishes over time as it becomes familiar or overused.

Barrier-To-Entry Effect

Factors that prevent or hinder new competitors from easily entering an industry or area of business.

Preference Consistency Effect

A phenomenon where individuals show a tendency to remain consistent with their previously stated preferences and choices over time.

Social Threat

Social threat refers to the perceived or real risk of harm to one's social status, acceptance within a group, or personal relationships.