Beaufort Ltd Is Introducing a New Range of Products

question 24

Multiple Choice

Beaufort Ltd is introducing a new range of products. It has established that the target selling prices of the three products are $120, $150 and $210. Beaufort requires a profit mark-up on cost of 33.3 per cent for all its products. What percentage of the target prices is the target cost in each case?

• A) 50%
• B) 60%
• C) 66.7%
• D) 75%

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Definitions:

De Facto Corporation

A business treated as a legally incorporated company for all purposes except against the state in a direct proceeding, despite not completing the incorporation process properly.

De Jure Corporation

a corporation that is legally established and operating in accordance with the law.

Common Stock

Corporate stock that does not convey any preference to its holders.

Preferred Stock

Stock that conveys preferences to its holder with respect to assets and dividends.