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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

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 $247,100
Cost of goods sold:
Direct materials $126,021
Direct labor 42,007
Overhead 29,652197,680
Gross profit $49,420
Selling and administrative expenses 29,300
Operating income $20,120
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.)
fill in the blank 1
% 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 $1,470
Direct labor 294
Applied overhead 147
Total cost $1,911
What is the price that Privacy will quote given the markup percentage calculated in Requirement 1?(Round the price to the nearest dollar.)
$fill in the blank 2
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.)
fill in the blank 3
% 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.)

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