Question
Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units: Variable Costs Fixed Costs Manufacturing $200,000 $ 75,000 Selling & Administrative 150,000 25,000 Total
Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units:
| Variable Costs | Fixed Costs | |
| Manufacturing | $200,000 | $ 75,000 |
| Selling & Administrative | 150,000 | 25,000 |
| Total | $350,000 | $100,000 |
What is the markup on variable costs needed to break even?
| A. | 33.3 percent | |
| B. | 300.0 percent | |
| C. | 28.6 percent | |
| D. | 150.4 percent |
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Modern Auditing
Authors: William C Boynton, Raymond N Johnson
8th Edition
0471230111, 978-0471230113
