Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory consulting. The office and computer expenses are $625.000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20.000, and the average consulting hour has $30 of variable costs. (a) if the company desires a profit of $100,000, what should it charge per hour? Round to the nearest cent. $ (b) What is the markup on variable costs if the desired profit is $150.000? Round to the nearest whole percent. (c) if the desired profit is $60,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? Round to the nearest whole percent. Markup to cover unassigned costs % Markup to cover desired profits 96
Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory consulting. The office and computer expenses are $625.000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20.000, and the average consulting hour has $30 of variable costs. (a) if the company desires a profit of $100,000, what should it charge per hour? Round to the nearest cent. $ (b) What is the markup on variable costs if the desired profit is $150.000? Round to the nearest whole percent. (c) if the desired profit is $60,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? Round to the nearest whole percent. Markup to cover unassigned costs % Markup to cover desired profits 96
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cost-Based Pricing and Markups with Variable Costs
Compu Services provides computerized inventory consulting. The office and computer expenses are $625.000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20.000, and the average consulting hour has $30 of variable costs.
(a) if the company desires a profit of $100,000, what should it charge per hour? Round to the nearest cent.
$
(b) What is the markup on variable costs if the desired profit is $150,000? Round to the nearest whole percent.
(c) If the desired profit is $60,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? Round to the nearest whole percent.
Markup to cover unassigned costs
Markup to cover desired profits
96
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