Farr Company Had the Following Information What Is the Markup Based on Cost of Goods Sold

question 82

Multiple Choice

Farr Company had the following information: $\begin{array}{lrr}\text {Revenues}&&\$400,000\\\text {Cost of goods sold:}\\\text { Direct materrals } & \$ 100,000 \\\text { Direct labour } & 50,000 & \\\text { Overhead } & \underline{50,000 }& \underline{200,000} \\\text { Gross profit } & & \$ 200,000 \\\text { Selling and administrative expenses } & & \underline{75,000}{} \\\text { Operating income } & &\underline{ \$ 125,000}\end{array}$ What is the markup based on cost of goods sold?

• A)37.5%
• B)50.0%
• C)62.5%
• D)100.0%