Problem 1 - Nancy Company has budgeted sales of $300,000 with the following budgeted costs:

Direct materials $60,000

Direct manufacturing labor 40,000

Factory overhead

Variable 30,000

Fixed 50,000

Selling and administrative expenses

Variable 20,000

Fixed 30,000

Question 1: Compute the average markup percentage for setting prices as a percentage of the full cost of the product. (five points)

Question 2: Compute the average markup percentage for setting prices as a percentage of the variable cost of the product. (five points)

Question 3: Compute the average markup percentage for setting prices as a percentage of the variable manufacturing costs. (five points)