Question
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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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
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