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Monroe Inc. has predicted the following costs for this year for 100,000 units: Manufacturing Selling and Administrative Variable $1,600,000 $ 400,000 Fixed 2,400,000 1,200,000 Total

Monroe Inc. has predicted the following costs for this year for 100,000 units:

Manufacturing

Selling and Administrative

Variable

$1,600,000

$ 400,000

Fixed

2,400,000

1,200,000

Total

$4,000,000

$1,600,000

Required:

a. What is the markup on variable costs needed to achieve a target profit of $250,000?

b. What is the initial unit selling price needed to obtain a target profit of $250,000 using the variable cost markup method?

c. What is the manufacturing cost markup needed to obtain a target profit of $250,000?

d. What is the initial unit selling price needed to obtain a target profit of $250,000 using the manufacturing cost markup method?

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