User Account

All Pages

Calculate markup percentage on variable manufacturing costs

Assignment Help Accounting Basics
Reference no: EM131918487

PROBLEM - Patty Corporation has predicted the following costs for the year for based upon 100,000 units of product.

                        Manufacturing           Selling & Administrative

Variable             $1,600,000                 $600,000

Fixed                  2,400,000                 1,200,000

Total                $4,000,000                  $1,800,000

A. Calculate the markup percentage on variable manufacturing costs to achieve a profit of $200,000. Calculate the unit selling price needed to obtain this target profit.

B. Calculate the markup percentage on manufacturing costs to obtain a profit of $200,000. Calculate the unit selling price needed to obtain this target profit.

C. Which one of the above (A or B) results in less risk for Patty Corporation? Explain your choice.

Reference no: EM131918487

Questions Cloud

Prepare a schedule allocating the service department costs : Prepare a schedule allocating the service department costs to the producing departments using the step allocation method
Hiring decisions-motivation vs ability : Discuss whether ability or motivation is more important in selecting the right person for the right job. Explain your rationale.
Discuss some forecasting issues : Discuss some forecasting issues that you encounter in your daily life. How do you make your forecasts? What relationship does this have to operations management
What is initial investment outlay for spectrometer : What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?
Calculate markup percentage on variable manufacturing costs : Calculate the markup percentage on variable manufacturing costs to achieve a profit of $200,000. Calculate the markup percentage on manufacturing costs
What types of marketing communications are used : What types of marketing communications are used? Is the mix different for different brands? What is your assessment of the effectiveness of the company's.
What is the assembly line efficiency : What is your line balance if peak demand is 450 wires per day? What is the assembly line efficiency for each line balance solution.
The nominal and effective cost of such credit : What would be the nominal and effective cost of such a credit?
Discuss component of the movement infrastructure : The structural connector PolyConnec is a component of the 'movement infrastructure' developed in my doctoral research "FormMind Body Space Time.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the present value of the bond issue

Calculate the present value of the bond issue to determine its selling price.

  Determine the capitalized cost of the coal mine

Determine the capitalized cost of the coal mine. Prepare a summary journal entry to record the acquisition costs of the mine.

  Compute the direct materials cost variance

Compute the direct materials cost variance, including its price and quantity variances

  Olson amp wolcott inc issued 2400000 of face value bonds on

olson amp wolcott inc. issued 2400000 of face value bonds on january 31 2014. they are 12 bonds and sold for 2400000

  What is the difference between a current liability for an

what is the difference between a current liability for an uncertain amount and a contingent liability? give an example

  Compare the effects of renouncing citizenship

Decide if either of these actions is warranted in your particular case and state why you think that way.

  Differ between merchandising and a service company

How does income measurement differ between a merchandising and a service company?

  Prepare an income statement and balance sheet

The goods In Event 1 were purchased FOB shipping point with freight cost of $295 cash. Prepare an income statement and balance sheet

  E1aconcept carlos companys accountant makes the

e1a.concept . carlos companys accountant makes the assumptions or performs the activities listed below. tell which of

  What is the purpose of depreciation does the book value of

what is the purpose of depreciation? does the book value of a fixed assetu2014cost minus accumulated

  Confidence in a persons job

Human resources stands out because dealing with people and their needs is something that is dealt with on a daily basis. Being able to know what people need to accomplish their tasks, whether its training, equipment, or even moral support is vita..

  Prepare a cost of production report for april

Assume that Walters uses the weighted average method to cost out the audio package. Prepare a Cost of Production Report for April

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd