Cost price of article = 48$
% of overhead cost = 15
Net profit = 12 $
We need to calculate % markup
Net profit as % of cost price = (12/48)*100 = 25%
Total markup should be = 25 + 15 = 40%
The purchase price of an article is $48. In order to include 15% of cost for overhead and to provide $12 of net profit, the markup should be
(1) 15%
(2) 25%
(3) 35%
(4) 40%
(5) 45%