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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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