Computing Markups The predicted 2009 costs for Osaka Motors are as follows: Manufacturing Costs Selling and Administrative Costs Variable $100,000 Variable $300,000 Fixed 220,000 Fixed 200,000 Average total assets for 2009 are predicted to be $ 6,000,000. (a) If management desires a 13 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answers to the nearest whole percent.) Markup on variable costs Answer 1 300% Markup on manufacturing costs Answer 2 400 % (b) If the company desires a 7 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? Note: The markup percentage on total manufacturing costs is 287%. Compute the markup percentage for each component. Note: Round your answers to the nearest whole percent. Markup to cover unassigned costs Answer 3 156 % Markup to cover desired profit Answer 4 219%
Computing Markups The predicted 2009 costs for Osaka Motors are as follows: Manufacturing Costs Selling and Administrative Costs Variable $100,000 Variable $300,000 Fixed 220,000 Fixed 200,000 Average total assets for 2009 are predicted to be $ 6,000,000. (a) If management desires a 13 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answers to the nearest whole percent.) Markup on variable costs Answer 1 300% Markup on manufacturing costs Answer 2 400 % (b) If the company desires a 7 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? Note: The markup percentage on total manufacturing costs is 287%. Compute the markup percentage for each component. Note: Round your answers to the nearest whole percent. Markup to cover unassigned costs Answer 3 156 % Markup to cover desired profit Answer 4 219%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Computing Markups The predicted 2009 costs for
Osaka Motors are as follows: Manufacturing Costs
Selling and Administrative Costs Variable $100,000
Variable $300,000 Fixed 220,000 Fixed 200,000
Average total assets for 2009 are predicted to be $
6,000,000. (a) If management desires a 13 percent
rate of return on total assets, what are the markup
percentages for total variable costs and for total
manufacturing costs? (Round your answers to the
nearest whole percent.) Markup on variable costs
Answer 1 300% Markup on manufacturing costs
Answer 2 400 % (b) If the company desires a 7
percent rate of return on total assets, what is the
markup percentage on total manufacturing costs
for (1) unassigned costs and (2) desired profit?
Note: The markup percentage on total
manufacturing costs is 287%. Compute the
markup percentage for each component. Note:
Round your answers to the nearest whole percent.
Markup to cover unassigned costs Answer 3 156 %
Markup to cover desired profit Answer 4 219%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education