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

$400,000

$150,000

Selling & Administrative

200,000

50,000

Total

$600,000

$200,000

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 $150,000?

c. What is the markup on manufacturing costs needed to obtain a target profit of $250,000?

Reference no: EM132078475

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