Sarker manufacturing company produces and sells 40,000 units of a single product. Variable costs total $80,000 and fixed costs total $120,000. If each unit is sold for $8, what markup percentage is the company using?

Question

Sarker manufacturing company produces and sells 40,000 units of a single product.  Variable costs total $80,000 and fixed costs total $120,000.  If each unit is sold for $8, what markup percentage is the company using?

A.	60.0%  	
	B.	160% 	
 	C.	75%	
	D.	133%

Writeacher · Answer

Your umpteen posts have been removed. Once you write up YOUR THOUGHTS, please re-post, and someone here will be happy to comment.

drwls · Answer

The unit cost is (including fixed costs) $5 and they sell for $8. What does that tell you?