The Swan Company Produces Its Product at a Total Cost

question 29

Multiple Choice

The Swan Company produces its 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 product cost.

• A) 80%
• B) 46.5%
• C) 70%
• D) 110%