The following is Talley Company s income statement for the past
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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