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Please help complete the chart below: Determine the markup percentage on total variable costs required to earn the desired profit USB Inc. predicted 2018 variable
Please help complete the chart below:
Determine the markup percentage on total variable costs required to earn the desired profit
USB Inc. predicted 2018 variable and fixed costs are as follows Company budgeted for: 43,200 Units Variable Fixed costs costs Manufacturing Selling and Administrative Total 734.400 172,800 216,000 60,500 950,400 233,300 USB Inc. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows Direct material Direct labor Variable Manufacturing Overhead Fixed Manufacturing Overhead -allocated per unit Total manufacturing costs S6 4 $21 The following is the variable selling and administrative costs for the flash drive Management has set a 2018 target profit on the flash drive of; Required: Make sure you show your work or use cell references for all calculations. You will not earn credit if you just type in your answer S5 $200,000 1. Determine the markup percentage on total variable costs required to earn the desired profit 2 Use the variable cost markup you determined in #1 above to determine a suggested selling price for a flash drive. You are determining selling price per unit Selling price is based on total variable cost plus markup from #1 above Total variable cost per unit Markup above total Variable cost Selling price per unit 3. For the flash drive, break the markup determined in #2 above on variable costs into separate parts for fixed costs and profit. Markup for fixed costs Markup for profit Total Markup which should agree with what you calculated in #2 above for markup above variable cost 4. Explain what the minimum unit selling price a company would use in special order decision, if the company had excess capacityStep by Step Solution
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