Question:
The following is Talley Company"s 2010 income statement.
|
Sales revenue
|
$540,000
|
|
Cost of goods sold
|
324,000
|
|
Gross margin
|
216,000
|
|
Operating expenses
|
126,000
|
|
Operating income
|
$ 90,000
|
Required
1. What is the markup percentage on cost of goods sold?
2. What is the markup percentage on total cost?
3. What is the gross margin percentage?
4. If the company wants to sell a new product that costs $42 wholesale while keeping the same markup structure, what will be the price of the new product?