Compu Services provides computerized inventory consulting. The office and computer expenses are $625,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $30 of variable costs.

(a) If the company desires a profit of $100,000, what should it charge per hour?Round to the nearest cent.

$

Answer

Correct

1.00 points out of 1.00

(b) What is the markup on variable costs if the desired profit is $150,000? Round to the nearest whole percent.

Answer

Incorrect

0.00 points out of 1.00%

(c) If the desired profit is $60,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? Round to the nearest whole percent.

Markup to cover unassigned costs

Answer

Incorrect

0.00 points out of 1.00%

Markup to cover desired profits

Answer

Incorrect

0.00 points out of 1.00%

2

The predicted 2014 costs for Osaka Motors are as follows:

Variable	$ 100,000	Variable	$300,000
Fixed	220,000	Fixed	200,000

Average total assets for 2014 are predicted to be $5,000,000.

(a) If management desires a 12 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answer to the nearest whole percent.)

Markup on variable costs

Answer

Incorrect

0.00 points out of 1.00

%

Markup on manufacturing costs

Answer

Incorrect

0.00 points out of 1.00%

(b) If the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? (Round your answer to the nearest whole percent.)

Markup to cover unassigned costs

Answer

Incorrect

0.00 points out of 1.00

%

Markup to cover desired profit

Answer

Incorrect

0.00 points out of 1.00%