At a Certain Level of Operations, Per Unit Costs and Selling

Multiple Choice

At a certain level of operations, per unit costs and selling price are as follows: manufacturing costs, $50; selling and administrative expenses, $10; selling price, $80. Given this information, the mark-on percentage to manufacturing cost used to determine selling price must have been:

A) 40 percent.
B) 60 percent.
C) 33 percent.
D) 25 percent.