What is the markup on variable costs needed to break even

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Question - Oma Company has the following budgeted costs for 10,000 units:

 

Variable Costs

Fixed Costs

Manufacturing

$200,000

$100,000

Selling & Administrative

175,000

50,000

Total

$375,000

$150,000

Required -

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?

c. What is the markup on manufacturing costs needed to obtain a target profit of $75,000?

Reference no: EM131678890

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