Question

Ricardo Company has predicted the following costs for this year for 50,000 units: Manufacturing Selling and Administrative Variable $200,000 $ 25,000 Fixed 300,000 75,000 Total $500,000 $100,000 What is the manufacturing cost markup needed to obtain a target profit of $100,000

Answer 1

Answer:

See below

Explanation:

Computation of manufacturing cost markup needed to obtain a target profit of $100,000

= ($300,000 + $75,000 + $100,000) / $200,000

= 4.75%