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Question - Faulkner Corporation has the following budgeted costs for 20,000 units:
Variable Costs Fixed Costs
Manufacturing $250,000 $60,000
Selling and Administrative 150,000 40,000
Total $400,000 $100,000
a. What is the markup on variable costs needed to break even?
b. What is the markup on variable costs needed to obtain a target profit of $75,000?
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