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Examveda

Which of the following is the correct formula of mark-up price?

A. $${\text{Manufacturer's cost}} = {\text{Variable cost + }}\frac{{{\text{Fixed costs}}}}{{{\text{Unit sales}}}}$$

B. $${\text{Manufacturer's cost}} = {\text{Fixed costs + }}\frac{{{\text{Variable cost}}}}{{{\text{Unit sales}}}}$$

C. $${\text{Manufacturer's cost}} = {\text{Unit sales + }}\frac{{{\text{Fixed costs}}}}{{{\text{Variable cost}}}}$$

D. $${\text{Manufacturer's cost}} = {\text{Variable cost + }}\frac{{{\text{Unit sales}}}}{{{\text{Fixed costs}}}}$$

Answer: Option A


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