Consider the following data from Kastoria Leather Company’s budgeted income statement (in thousands of dollars):

Compute the following markup formulas that would be used for obtaining the same target selling prices as a percentage of (1) total variable costs, (2) full costs, (3) variable manufacturing costs, and (4) absorption costs.

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Target sales $60,000 Variable costs: Manufacturing 30,000 Selling and administrative 6,000 Total variable costs 36,000 Fixed costs: Manufacturing 8,000 Selling and administrative 6,000 Total fixed costs 14,000 Total all costs 50,000 Operating income $10,000