Markup on Cost, Job Pricing Privacy Window and Wall Treatments Company provides draperies, shades, and various window treatments. Privacy works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Privacy's income statement for last year is as follows: Revenues Cost of goods sold: Direct materials Direct labor Overhead Gross profit Selling and administrative expenses Operating income $125,103 41,701 29,436 $245,300 196,240 $49,060 28,500 $20,560 Privacy wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round to the nearest whole percent. Use this amount for future calculations.) % of cost of goods sold 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: Direct materials Direct labor $1,090 Applied overhead Total cost 218 109 $1,417 What is the price that Privacy will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Privacy wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round to the nearest whole percent. Use this amount for future calculations.) % of direct materials cost What is the bid price Privacy will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)