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%

---

Definitions:

Neurons

Neurons are the basic working units of the brain and nervous system, responsible for receiving, processing, and transmitting information through electrical and chemical signals.

Cell Body

The spherical part of a neuron that contains the nucleus and connects to the dendrites and axon, critical for processing information.

Axon

A long, slender projection of a neuron that conducts electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Dendrites

The branched extensions of a neuron that receive signals from other neurons and convey them toward the cell body.