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Patty Corporation 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

Patty Corporation 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:

b. What is the initial unit selling price needed to obtain a target profit of $200,000 using the variable cost markup method?

c. What is the manufacturing cost markup needed to obtain a target profit of $200,000?

d. What is the initial unit selling price needed to obtain a target profit of $200,000 using the manufacturing cost markup method?

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