Sunday, September 18, 2011

What is the markup percentage as a percentage of cost for Timothy Company?

ACCOUNTING

Multiple Choice

Timothy Company has invested $2,000,000 in a plant to make vending machines. The target operating income desired from the plant is $300,000 annually. The company plans annual sales of 1,500 vending machines at a selling price of $2,000 each.



What is the markup percentage as a percentage of cost for Timothy Company?

a. 15.0%

b. 17.6%

c. 10.0%

d. 11.1%

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