Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Computing Markups The predicted 2009 costs for Osaka Motors are as follows: Average total assets for 2009 are predicted to be $7,000,000. (a) If management

image text in transcribed Computing Markups The predicted 2009 costs for Osaka Motors are as follows: Average total assets for 2009 are predicted to be $7,000,000. (a) If management desires a 13 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answers t the nearest whole percent.) Markup on variable costs % Markup on manufacturing costs % (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? Note: The markup percentage on total manufacturing costs is 375%. Compute the markup percentage for each component. Note: Round your answers to the nearest whole percent. Markup to cover unassigned costs % Markup to cover desired profit %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions