A Company's 2013 Income Statement Reported the Following for the Year

Multiple Choice

A company's 2013 income statement reported the following for the year ended December 31, 2013: $\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 453 \\\hline \text { Sales returns } & 6 \\\hline \text { Cost of goods sold } & 270 \\\hline \text { Expenses } & 126 \\\hline \text { Net income } & \$ 51 \\\hline\end{array}$
Based only on the above data, the (a) average markup on cost, and (b) the average markup on selling price were: $\begin{array}{|l|l|l|}\hline &\text { (a) Mark-up on a cost } & \text { (b) Mark-up on selling price } \\\hline 1&13.60 \% & 7.40 \% \\\hline 2&59.60 \% & 39.70 \% \\\hline 3&60.00 \% & 40.00 \% \\\hline 4&65.56 \% & 39.60 \% \\\hline\end{array}$

A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4