Figure 10-3
Farr Company Had the Following Information -Refer to Figure 10-3

Multiple Choice

Figure 10-3
Farr Company had the following information: $\begin{array}{lcc}\text { Revenues } & & £ 400,000 \\\text { Cost of goods sold: } &£ 100,000 & \\\text { Direct materials } & 50,000\\ \text { Overhead } & 50,000 & 200,000 \\ \text { Gross profit } & & £ 200,000 \\\text { Selling and administrative expenses } & & 75,000 \\ \text { Operating income } & & £ 125,000 \\\end{array}$
-Refer to Figure 10-3. What is the mark up based on cost of goods sold?

A) 50.0%
B) 100.0%
C) 37.5%
D) 62.5%