If the Target Profit Is $60,000 for a Volume of 480

question 76

Multiple Choice

If the target profit is $60,000 for a volume of 480 units, fixed costs are $168,000, and the variable cost per unit is $450, then the markup percentage on variable cost would be:

• A) 104.56%.
• B) 105.56%.
• C) 106.00%.
• D) 106.45%.
• E) none of the other answers are correct.

---

Definitions:

Zero Defects

A quality management philosophy that aims for the minimization and elimination of defects in manufacturing processes and products.

Deming

Refers to W. Edwards Deming, an American engineer and statistician known for his work in quality management and his influential ideas in improving business processes.

Numerical Quotas

Specific numeric limits set for production, sales, or other business metrics that need to be achieved within a given timeframe.