Consolidated Corporation Had the Following Information What Would Be the Price for a Product That Has

Multiple Choice

Consolidated Corporation had the following information: $$\begin{array} { l r r } \text { Revenues } & & \$ 250,000 \\\text { Cost of goods sold: } & \\\quad \text { Direct materials } & \$ 50,000 & \\\quad \text { Direct labor } & 37,500 & \\\quad \text { Overhead } & 62,500 & 150,000 \\\text { Gross profit } & & \$ 100,000 \\\text { Selling and administrative expenses } & & 37,500 \\\text { Operating income } & \$ 62,500 \\\hline\end{array}$$
What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?

A) $625
B) $708
C) $834
D) $2,000