Answer:
80%
Explanation:
The computation of the markup percentage on product cost is shown below:
= (Selling and administrative expenses per unit + desired profit per unit) ÷ (product cost per unit)
= ($70 per unit + $58 per unit) ÷ ($160 per unit)
= ($128 per unit) ÷ ($160 per unit)
= 80%
All other information which is given is not relevant. Hence, ignored it
Markup cost refers to the increase in total cost by the company to calculate the selling price. The markup percentage on the lawn mover is 80%.
Cost Markup is the amount that is added to the original cost of the product to calculate its selling cost. It is calculated as a percentage of original cost.
The formula to calculate percentage of cost markup is:
[tex]\rm Percentage\:of\:cost\:markup = \dfrac{Selling\:price - Cost}{Selling\:price} \times100[/tex]
Where, the cost is not provided, the cost can be calculated as a combination of variable cost and profit.
Therefore, the percentage of cost markup on lawn mover is:
[tex]\begin{aligned} \rm Percentage\:of\:cost\:markup &= \dfrac{\$70 + \$58}{\$160}\times 100\\\\&= \dfrac{\$128}{\$160}\times 100\\\\\\&= 80\%\end[/tex]
The markup can be reflected in the product cost, and hence is calculated as a percentage of product cost.
Therefore the percentage of cost markup is 80%.
Learn more about cost markup here:
https://brainly.com/question/10705912
