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Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment. The company would like to develop a unified approach to pricing its product line

Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment.

The company would like to develop a unified approach to pricing its product line for next year using cost-plus pricing but does not know what cost base should be used.

Last year, ONEC earned $150,000 of profit from sales of its products and would like to earn $225,000 next year.

Last year, the company incurred the following costs:

Manufacturing Costs: Variable 260,000.00 Fixed 160,000.00 Selling and Administraitve: Variable 90,000.00 Fixed 180,000.00

  1. Calculate the Markup Percentage based on a cost basis of All variable and fixed costs. (provide your answer in % form to two decimal places, i.e. 37.428% = 37.43)
  2. Calculate the Markup Percentage based on a cost basis of Cost of Goods Sold. (provide your answer in % form to two decimal places, i.e. 37.428% = 37.43)
  3. Calculate the Markup Percentage based on a cost basis of Total variable costs. (provide your answer in % form to two decimal places, i.e. 37.428% = 37.43)
  4. Calculate the Markup Percentage based on a cost basis of Variable Manufacturing Costs. (provide your answer in % form to two decimal places, i.e. 37.428% = 37.43)
  5. ONEC's best harpoon costs $170 to manufacture and includes $95 of variable manufacturing costs and $75 of fixed overhead costs. Assuming the company uses a markup on variable manufacturing costs (previously calculated as one of the markup bases), what is the recommended sales price of the harpoon? (answer to two decimal places)

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