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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
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 %
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