Question
Tootsie Manufacturing Company has the following budgeted costs for 10,000 units: Variable Costs Fixed Costs Manufacturing $100,000 $50,000 Selling & Administrative 50,000 12,000 Total $150,000
Tootsie Manufacturing Company has the following budgeted costs for 10,000 units:
Variable Costs
Fixed Costs
Manufacturing
$100,000
$50,000
Selling & Administrative
50,000
12,000
Total
$150,000
$62,000
What is the initial selling price needed to obtain a target profit of $100,000 using the variable cost markup method?
A. 60.50
B. 31.20
C. 55.00
D. 30.75
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Managerial Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
12th Edition
1133952402, 978-1133952404
