Reference no: EM132478989

Blockbuster Video Rental has budgeted sales of $780,000 with the following budgeted costs:

Direct material                             $168,000

Direct manufacturing labour           132,000

Factory overhead:

Variable                                      96,000

Fixed                                       108,000

Selling and administrative expense:

Variable                                 72,000

Fixed                                  100,000

Required

Question 1: Compute the average markup percentage for setting prices as a percentage of:

1. Total manufacturing costs
2. The variable cost of the product 
3. The full cost of the product 
4. Variable manufacturing costs