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Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per

Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per unit. Additional information is as follows:

Variable product cost per unit $ 79
Variable administrative cost per unit 21
Total fixed overhead 42,000
Total fixed administrative 31,000


Using the variable cost method, what markup percentage to variable cost should be used?


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