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Pauley Company needs to determine a markup for a new product. Pauley expects to sell 15,000 units and wants a target profit of $22 per
Pauley Company needs to determine a markup for a new product. Pauley expects to sell 15,000 units and wants a target profit of $22 per unit. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials Direct labor Overhead $ 8 Overhead 9 General and administrative 2 11 $ 13,500 21,000 General and administrative Using the variable cost method, what markup percentage to variable cost should be used? Multiple Choice 71% 76% 92% 81% 80%
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