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matarata matarata
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Posts: 277
6 years ago
Ocean Grove Vending Company has invested $1,450,000 in a plant to make vending machines. The target operating income desired from the plant is $362,500 annually. The company plans annual sales of 1500 vending machines at a selling price of $1000 each.

What is the markup percentage as a percentage of cost for Ocean Grove Vending Company?
A) 24.17%
B) 31.87%
C) 75.83%
D) 25.00%
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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wrote...
6 years ago
 B
Explanation:  Sales revenue = 1500 units  $1000 = $1,500,000
Markup percentage = [$362,500 / ($1,500,000  $362,500)] = 31.87%
matarata Author
wrote...
6 years ago
Thanks for your help!
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