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Question - 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
Compute the average mark-up percentage for setting prices as a percentage of:
a. The full cost of the product
b. The variable cost of the product
c. Variable manufacturing costs
d. Total manufacturing costs
You are the owner of a lawn service company (LawnCo) which provides grounds and maintenance services to a range of corporate customers.
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