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Apolosi Matani
on Oct 23, 2024

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Which of the following formulas represents the mark-up percentage on full cost?

A) Mark-up % = target profit / (annual volume  total cost per unit)
B) Mark-up % = target profit  total cost per unit
C) Mark-up % = target profit  annual volume
D) Mark-up % = (target profit  total cost per unit) / annual volume

Full Cost

The total cost of production, encompassing direct and indirect costs.

Mark-Up Percentage

The proportion of cost added to the selling price over the actual cost to achieve profit.

Target Profit

The amount of net income a company aims to achieve within a specific period as part of its financial and operational goals.

  • Apply cost-plus pricing frameworks to determine the pricing structure for products.
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VG
Victoria GarciaOct 26, 2024
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