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Marksman DVD Company (Marksman) manufactures portable DVD players. The company requires a 20% rate of return on its investments. To start up the business, an investment of $350,000 was required. General and administrative expenses total $500,000. Each year, the sales volume is equal to 20,000 DVD players, each with a unit product cost of $110. Assuming that the company uses the formula method, determine the markup percentage that Marksman would apply in a cost-plus pricing scheme.

Do not enter percentage signs or commas in the input boxes. Round your answer to 2 decimal places. Markup Percentage: ?

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Spy Problems is considering using the target costing method to determine a selling price for one of its new products. An analysis of similar products on the market suggests a price of $190 each. If the company requires a profit of $95 per unit, what target cost should be set for the new product?

Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Target Cost:?

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At the JIHL Company, a new truck part is being designed by the engineering team. Both the accounting and marketing departments are asked to evaluate the product and use the target pricing method to determine the target cost of the new product. Currently, the company's competitors are selling a similar truck part for $190 per unit. JIHL Company requires a profit of 42% of the selling price.

Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Target Cost per unit:?

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Mintshirt Company manufactures a single product: skirts. Mintshirt's skirts have a unique design that is not replicated by any other skirt manufacturer. The company was formed at the beginning of last year with an initial investment of $847,000. Mintshirt requires a 40% annual rate of return on the investment. In total, 9,800 skirts were produced and sold last year. For the upcoming year, the production and sales volumes are not expected to change from last year. The following costs are budgeted for the upcoming year:

	Per Unit	Total (9,800 units)
Direct Materials	$84
Direct Labor	$78
Variable Manufacturing Overhead	$29
Fixed Manufacturing Overhead		$225,400
General and Administrative Expenses		$405,000

To price their product, Mintshirt uses the cost-plus pricing method. The company has a policy of using the absorption costing method for assigning costs to inventory and the formula method for determining a markup percentage. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Determine the budgeted full cost of a skirt for the upcoming year. Full Cost:? b) Calculate the markup percentage. Markup Percentage:? c) Determine the selling price of a skirt for the upcoming year. Selling Price: ?