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I just need help answering the bottom question for markup %. Please help me with an explanation or formula. Thanks! Gold Ribbon makes candy bars
I just need help answering the bottom question for markup %. Please help me with an explanation or formula. Thanks!
Gold Ribbon makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Gold Ribbon makes a variety of candies, the cost differences are insignificant, and the cases all sell for the same price. Gold Ribbon has a total capital investment of $15,000,000. It expects to produce and sell 500,000 cases of candy next year. Gold Ribbon requires a 12% target return on investment. Expected costs for next year are: (Click the icon to view the costs.) Gold Ribbon prices the cases of candy at full cost plus markup to generate profits equal to the target return on capital. Read the requirements. Gold Ribbon must charge per case to earn the target operating income. Now calculate the markup percentage on full cost. Determine the formula, then compute the markup percentage. (Enter the per unit amounts to the nearest cent. Enter the markup on full costs as a percentage rounded to two decimals, X.XX\%.) Variable production costs $4.50 per case Variable marketing and distribution costs $1.00 per case Fixed production costs $1,200,000 Fixed marketing and distribution costs $900,000 Other fixed costs $350,000Step by Step Solution
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