Assume a Company Wishes to Maintain a Markup of 35

question 95

Multiple Choice

Assume a company wishes to maintain a markup of 35% on a product with a unit cost of $25 $14 variable and $11 fixed. What amount will the company set as the selling price?

• A) $30.00
• B) $33.75
• C) $38.46
• D) $43.90

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Definitions:

Cephalic Phase

The initial phase of digestion triggered by the sight, smell, thought, or taste of food, which stimulates gastric secretions in preparation for food ingestion.

Gastric Juice

A acidic fluid secreted by the stomach glands and active in promoting digestion.

Gastric Secretion

The process of producing and releasing fluids, including hydrochloric acid and digestive enzymes, by the stomach's lining.

Muscularis

A layer of muscle in the walls of hollow organs, such as the gastrointestinal tract, responsible for movement of the organ's contents.