B. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?
B. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![B. Consider the following:
Total variable costs
$200,000
Total fixed costs
$150,000
Annual volume of units
500
Average invested capital
$400,000
Target Return on investment
20.0%
To the nearest tenth, what is the markup percentage required to earn the target return on
investments using the cost-plus formula based on total costs?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5d1bea1-af6d-46ec-b6ee-ecd310bf49a4%2Fdf448fb9-d1b0-45f0-a3f5-0ec92d1cc270%2Ft9z8sur_processed.png&w=3840&q=75)
Transcribed Image Text:B. Consider the following:
Total variable costs
$200,000
Total fixed costs
$150,000
Annual volume of units
500
Average invested capital
$400,000
Target Return on investment
20.0%
To the nearest tenth, what is the markup percentage required to earn the target return on
investments using the cost-plus formula based on total costs?
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