Homework Answers
| a. | Selling price | = | $ 376 | |
| b. | Markup on cost | = | 20% | |
| c. | Markup on selling price | = | 16.7% | |
| Workings: | ||||
| Operating expenses | = | $ 94 | ||
| Cost | = | Operating expenses / 30% | ||
| = | $ 313.33 | |||
| Desired operating profit | = | 20% X $313.33 | ||
| = | $ 62.67 | |||
| Selling price | = | $313.33 + $62.67 | ||
| = | $ 376 | |||
| Markup on cost | = | 20% | ||
| Markup on selling price | = | ($376 - $313.33) / $376 | ||
| = | 16.7% | |||
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