Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment.

Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawnmower has a total cost of $230 per unit, of which $160 is product cost and $70 is selling and administrative expenses. In addition, the total cost of $230 is made up of $120 variable cost and $110 fixed cost. The desired profit is $58 per unit. Determine the markup percentage on product cost.

Answer:


Markup percentage on product cost
Desired Profit + Selling and Admin. Exp. 
Total Product Cost 
Markup percentage on product cost: 
* $230 – $70