Question
Marksman DVD Company (Marksman) manufactures portable DVD players. The company requires a 10% rate of return on its investments. To start up the business, an
Marksman DVD Company (Marksman) manufactures portable DVD players. The company requires a 10% rate of return on its investments. To start up the business, an investment of $350,000 was required. General and administrative expenses total $700,000. Each year, the sales volume is equal to 45,000 DVD players, each with a unit product cost of $120. Assuming that the company uses the formula method, determine the markup percentage that Marksman would apply in a cost-plus pricing scheme.
Round answer to 2 decimal places
Markup percentage: ????
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
