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
- What is the markup percentage on cost of goods sold?
- What is the markup percentage on total cost?
- What is the gross margin percentage?
- 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?