If the Target Profit Is $60 000 for an Annual

question 9

Multiple Choice

If the target profit is $60 000 for an annual volume of 480 units, the total annual fixed costs are $168 000 and the total variable cost per unit is $450, then what is the mark-up percentage on total variable cost?

• A) 15.6%
• B) 13.5%
• C) 105.6%
• D) 115.6%

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Definitions:

Specific Identification

An inventory costing method where the cost of each specific item in inventory is identified and assigned to that item.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Management

The process of directing, controlling, and organizing the work of a company or organization and its employees.

Price Changes

Refers to variations in the cost of goods or services over a period of time, often impacting consumer purchasing power and business profit margins.