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Markup percentage on total manufacturing costs

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Reference no: EM132104948

The predicted 2017 costs for Gamma Motors are as follows:

Manufacturing Costs

Variable: $250,000

Fixed: $450,000

Selling & Administrative Costs

Variable: $600,000

Fixed: $300,000

Average total assets for 2017 are predicted to be $5,000,000.

If the company desires a 10% rate of return on total assets, what is the markup percentage on total manufacturing costs for the desired profit?

Reference no: EM132104948

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