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Hello, I am requesting help with #4.... I'm a little confused on what the question is asking. Thank you in advance. Communications Unlimited provides support
Hello, I am requesting help with #4.... I'm a little confused on what the question is asking. Thank you in advance.
Communications Unlimited provides support services to its clients. | ||||
This company expects to earn an annual return on the assets invested at a rate of: | 16% | |||
The company has the following amount invested in the business: | $6,000,000 | |||
The annual budgeted costs for next year are: | ||||
Variable costs | Fixed costs | |||
Support Services | $400,000 | 1,900,000 | ||
The annual budgeted hours for next year are: | ||||
Consulting services | 50,000 | hours | ||
Required: | You must use cell references for all calculations. | |||
1. Determine the Target profit for the company. | ||||
$ 960,000.00 | ||||
2. Determine the markup on variable costs in percentage terms. | ||||
$ 1.40 | ||||
3. Determine the variable cost per hour. | ||||
$ 8.00 | ||||
4. Determine the revenue per hour that will be charged if variable costs is the basis for markup. | ||||
5. Determine the markup on total costs in percentage terms. | Variable + Fixed | |||
42% | $2,300,000 |
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