Product cost markup percentage Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawn mower 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 nude up of $120 variable cost and$110 fixed cost. The desired profit is $58 per unit. Determine the markup percentage on product cost. BuyFind Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 BuyFind Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 Solutions Chapter Section Chapter 25, Problem 25.7BPE Textbook Problem Product cost markup percentageGreen Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawn mower 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 nude up of$120 variable cost and $110 fixed cost. The desired profit is$58 per unit. Determine the markup percentage on product cost.

Expert Solution
To determine

Product cost pricing: Product cost pricing is a pricing technique which sums up the costs involved in the production of the product alone and the markup is added to the sum.

Markup Percentage: The markup percentage is the percentage of additional costs added to the product cost to get the selling price of the product.

Markup Percentage = (DesiredProfit) + (Total Selling andAdmininstrative Expenses)Total Product Cost

To Determine: The markup percentage on the product cost for Company GTGT.

Explanation of Solution

The Company GTGT produces lawn movers and sells at $230 per unit.$160 is the Total Product Cost per unit and \$70 is the Total Selling and Administrative expenses per unit...

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