Pauley Company needs to determine a markup for a new product. Pauley expects to sell...
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Accounting
Pauley Company needs to determine a markup for a new product. Pauley expects to sell 24,000 units and wants a target profit of $18 per unit. Additional information is as follows:
Variable product cost per unit
$
18
Variable administrative cost per unit
13
Total fixed overhead
22,500
Total fixed administrative
29,100
Using the variable cost method, what markup percentage to variable cost should be used?
Multiple Choice
53%
78%
64%
57%
65%
Answer & Explanation
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