Magpie Corporation uses the total cost concept of product pricing. Below is the cost information...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 63,200 units of its sole product. Magpie desires a profit equal to a 18% rate of return on invested assets of $588,000.
Fixed factory overhead cost
$35,400
Fixed selling and administrative costs
7,300
Variable direct materials cost per unit
4.6
Variable direct labor cost per unit
1.88
Variable factory overhead cost per unit
1.13
Variable selling and administrative cost per unit
4.50
The markup percentage on total cost for the company's product is
a.17.0%
b.10.5%
c.13.1%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
