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4. Oma Company has the following budgeted costs for 10,000 units: Variable Costs Fixed Costs Manufacturing $400,000 $150,000 Selling & Administrative 200,000 50,000 Total $600,000
4. Oma Company has the following budgeted costs for 10,000 units:
| Variable Costs | Fixed Costs |
Manufacturing | $400,000 | $150,000 |
Selling & Administrative | 200,000 | 50,000 |
Total | $600,000 | $200,000 |
Required:
a. What is the markup on variable costs needed to break even?
b. What is the markup on variable costs needed to obtain a target profit of $150,000?
c. What is the markup on manufacturing costs needed to obtain a target profit of $250,000?
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