Patch Work's Product, Patch Supreme, Sells for $62

question 168

Multiple Choice

Patch Work's product, Patch Supreme, sells for $62.00 and its variable cost is $44.60 while the cost of goods sold per unit is $42.80.What is Patch Work's markup percentage on variable cost and what is its gross margin percentage?

• A)39%; 45%
• B)28%; 45%
• C)39%; 31%
• D)28%; 31%

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Definitions:

Influenza Epidemic

A widespread occurrence of the influenza virus in a community at a particular time, often causing significant illness and fatalities.

Flu Shot

A flu shot is a vaccine that protects against the influenza virus, designed to stimulate the body's immune system to prepare it to fight the virus if exposed.

Marginal Cost

The cost increase attributed to the manufacture of an additional product or service unit.

Department of Education

A government agency responsible for national policies and programs that aid in American education.