Farr Company Had the Following Information What Is the Markup Based on Prime Costs?
A)50

question 95

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 prime costs?

• A)50.0%
• B)133.3%
• C)166.7%
• D)300.0%

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Definitions:

Payment Order

A written instruction to a bank or financial institution authorizing the transfer of a specific amount of money from one account to another.

Receiving Bank

A bank that receives transferred funds in a transaction, often in the context of wire transfers or other electronic payments.

Electronic Funds Transfer Act

A U.S. law that protects consumers engaging in electronic transfers, including ATM withdrawals, direct deposits, and transfers initiated through debit card transactions.

Regulatory Statute

Laws designed to govern and regulate specific activities or sectors, aiming to maintain public welfare, safety, and standards.