Chapter 24, Problem 24.7APE

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.

$\text{Markup Percentage = }\frac{\left(\begin{array}{l}\text{Desired}\\ \text{Profit}\end{array}\right)\text{ + }\left(\begin{array}{l}\text{Total Selling and}\\ \text{Admininstrative Expenses}\end{array}\right)}{\text{Total Product Cost}}$

The markup percentage on the product cost for Company ML.