answer question 18.1. show steps so I know how to do it.

Chapter Is Pricing and Profitability Analysis CORNERSTONE EXERCISES OBJE COF roerstone Exercise 18.1 Markup on Cost, Job Pricing Ventana Window and Wall Treatm dow treatments. ments Company provides draperies, shades, and various win- encana works with the customer the appropriate window treatment places the order, and installs the finished productiematerials and direct labor costs a asy to trace to the jobs. Ventanas income statement for last year is as follows: Revenues Cost of goods sold: Direct materials S114.000 Direct labor 38.000 Overhead 26,000 178,000 Gross profit S 48,700 Selling and administrative expenses 32.000 Operating income $ 16,700 S226,700 Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the follow- ing costs: Direct materials S1,230 Direct labor 250 Applied overhead 175 Total cost $1,655 What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What i Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calcu- lated on the basis of direct materials cost? (Round to the nearest dollar.) Cornerstone Exercise 18.2 Costs of Different Customer Classes Naune Food Products Company manufactures canned mixed nuts with an average manufacture ing cost of $52 per case (a case contain ontains 24 cans of nuts). Kaune sold 150,000 cases last year to the following three classes of customer. Price per Case Cases Sold S58 Customer Supermarkets 93 88 80,000 40.000 30,000