Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

eBook 6 Print Question 2 Partially correct Mark 2.00 out of 4.00 Flag question Edit question Cost-Based Pricing and Markups with Variable Costs Computer Consultants

image text in transcribed

eBook 6 Print Question 2 Partially correct Mark 2.00 out of 4.00 Flag question Edit question Cost-Based Pricing and Markups with Variable Costs Computer Consultants provides computerized inventory consulting. The office and computer expenses are $830,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 18,000, and the average consulting hour has $40 of variable costs. (a) If the company desires a profit of $250,000, what should it charge per hour? Round to the nearest cent. $ 100 (b) What is the markup on variable costs if the desired profit is $322,000? Round to the nearest whole percent. 1.6 X % (c) If the desired profit is $100,000, 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 1.15 X % Markup to cover desired profits 14 %

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

Accounting

Authors: Carl s. warren, James m. reeve, Philip e. fess

21st Edition

978-0324400205, 324225016, 324188005, 324400209, 9780324225013, 978-0324188004

More Books

Students also viewed these Accounting questions

Question

1. What are the benefits of lean synchronisation?

Answered: 1 week ago

Question

Is there just cause to dismiss Bonita? Explain your answer.

Answered: 1 week ago

Question

Explain the legal term assumption of risk .

Answered: 1 week ago