The following is Talley Companys income statement for the past year. Sales revenue........ $540,000 Cost of goods

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The following is Talley Company’s income statement for the past year.

Sales revenue........ $540,000

Cost of goods sold..... 324,000

Gross margin........ 216,000

Operating expenses..... 126,000

Operating income...... $ 90,000

Required

a. What is the markup percentage on cost of goods sold?

b. What is the markup percentage on total cost?

c. What is the gross margin percentage?

d. 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?

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Managerial Accounting

ISBN: 978-1118338445

2nd edition

Authors: Charles E. Davis, Elizabeth Davis

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Question Posted: Feb 21, 2014 02:57 AM

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The following is Talley Companys income statement for the past year. Sales revenue........ $540,000 Cost of goods

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a 67 b Total cost 324000 126000 4500...View the full answer

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