Assume Markup Percentage Equals Desired Profit Divided by Total Costs

question 25

Multiple Choice

Assume markup percentage equals desired profit divided by total costs.What is the correct calculation to determine the dollar amount of the markup per unit?

• A)Total cost times markup percentage.
• B)Total cost per unit times markup percentage per unit.
• C)Total cost per unit divided by markup percentage per unit.
• D)Markup percentage per unit divided by total cost per unit.
• E)Markup percentage divided by total cost.

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Consideration

Something of value exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

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An official paper authorizing an individual (the agent) to handle legal or financial issues for another person (the principal).

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A document that states some contractual relationship or grants some right, enforceable by law.

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The actions or deeds performed under the terms of a contract or agreement between parties.