Exercise D3-25

The following is Talley Company's income statement for the past year.

Sales revenue$540,000

Cost of goods sold324,000

Gross margin216,000

Operating expenses126,000

Operating income$90,000

What is the markup percentage on cost of goods sold? (Round answer to 0 decimal places, e.g 45%.)

Markup percentage

%

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What is the markup percentage on total cost? (Round answer to 0 decimal places, e.g 45%.)

Markup percentage

%

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What is the gross margin percentage? (Round answer to 0 decimal places, e.g 45%.)

Gross margin percentage

%

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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? (Use the gross margin percentage and round final answer to 0 decimal places, e.g. 25,000.)

Price of the new product

$