Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per unit. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) $ 19 Overhead 40 General and administrative 20 21 Direct materials Direct labor Overhead General and administrative Using the variable cost method, what markup percentage to variable cost should be used? $ 42,000 31,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per
unit. Additional information is as follows:
Variable Costs per Unit
Fixed Costs (total)
$ 19 Overhead
40 General and administrative
20
21
Direct materials
Direct labor
Overhead
General and administrative
Using the variable cost method, what markup percentage to variable cost should be used?
$ 42,000
31,000
Transcribed Image Text:Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per unit. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) $ 19 Overhead 40 General and administrative 20 21 Direct materials Direct labor Overhead General and administrative Using the variable cost method, what markup percentage to variable cost should be used? $ 42,000 31,000
Multiple Choice
O
O
O
O
94.1%
80.1%
96.6%
98.20%
91.7%
Transcribed Image Text:Multiple Choice O O O O 94.1% 80.1% 96.6% 98.20% 91.7%
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