Solution-Determine the markup percentage on variable costs

Determine the markup percentage on variable costs

Assignment Help Managerial Accounting

Reference no: EM132515650

Technology Inc. predicted 2017 variable and fixed costs are as follows: Variable costs Fixed costs Manufacturing 480,000 315900 Selling and Administrative 216,000 60500 Total 696,000 376,400 Technology Inc. produces a wide variety of computer interface devices.

Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows:

Direct material $10

Direct labor 9

Variable Manufacturing Overhead 7

Fixed Manufacturing Overhead 9

Total manufacturing costs $35

The following is the variable selling and administrative costs for the flash drive: $6

Management has set a 2017 target profit on the flash drive of: $250,000

Required:

Question 1. Determine the markup percentage on variable costs required to earn the desired profit

Question 2. Use the variable cost markup to determine a suggested selling price for a flash drive. You are determining selling price per unit

Reference no: EM132515650

Questions Cloud

What happens to eoq if the carrying cost rises and explain : How many orders will be placed annually? At what inventory level should a reorder be made? What is the total cost of EOQ based system?

Examine the immediate and future impact of healthy habits : Examine the immediate and future impact of healthy and unhealthy habits practiced during early and middle adulthood. Use a minimum of two peer-reviewed sources.

Determine the ending balance in each account : Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000. Prepare journal entries to record

Accounting services : Wescan Accounting is a partnership which provides accounting services to a number of clients in addition to Island Properties. As a result of the relationship

Determine the markup percentage on variable costs : Use the variable cost markup to determine a suggested selling price for a flash drive. You are determining selling price per unit

System flow chart of expenditure cycle : System flow chart of expenditure cycle and Analysis of physical internal control weaknesses in the expenditure cycle - Analysis of the risks exist

Explain the underlying logic of a process costing system : Explain the underlying logic of a process costing system and its assignment of costs to products . Give an example of a company that would most likely use

Caught in obvious falsehoods and exaggeration : Several of truisms we accept about negotiation don't seem to apply to diplomacy or apply differently: not being caught in obvious falsehoods and exaggeration

How much manufacturing overhead applied to production : What account should be adjusted for over- or underapplied overhead? Should the balance of the account be increased or decreased?

User Account

All Pages

Determine the markup percentage on variable costs

Reference no: EM132515650

Reference no: EM132515650

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

How do information systems projects get started

What square companys pretax income is

Find raw materials consist solely of items

Prepare a schedule of operating cash flows using

What was the rate of return on the investment

What would be the financial impact of spending

Compute hudson co break -even sales dollars

Determine if jane is exempt or non-exempt under the flsa

How can eec avoid these behaviors

Does either form dominate from a tax perspective

What does the financial reporting includes

What is meant by the best-fitting line

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT