Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please can you give a solution of my homework Example 6: Gavin Petrosino, a building contractor, builds houses in tracts, often building as many as
please can you give a solution of my homework
Example 6: Gavin Petrosino, a building contractor, builds houses in tracts, often building as many as 20 homes simultaneously. Petrosino has budgeted costs for an expected number of houses in 20x0 as follows: Picos 1 Direct materials $3,000,000 Direct labor 2,000,000 Job construction overhead 2,500,000 Cost of jobs $ 7,500,000 Selling and admin. Costs 4,500,000 Total costs $ 12,000,000 96000 The job construction overhead includes approximately $1,500,000 of fixed costs, such as the salaries of supervisors and depreciation on equipment. The selling and administrative costs include $2,250,000 of variable costs, such as sales commissions and bonuses that depend fundamentally on overall profitability. Petrosino wants an operating income of $1.2 million for 20x0. 1,200cooo + 12,000,000 Instructions: Compute the average target markup percentage for setting price as a parentage of the following: - 13,200,000 17 Page 1. Direct materials plus direct labor. 2. The full "cost of job". 3. The variable "cost of job". 4. The full "cost of jobs" plus selling and administrative costs. 5. The variable "cost of jobs" plus variable selling and administrative costs. Answer: Markup = Sales - Cost Base Desined und sales = Net Profitt Total Co In + 12,000,00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started