I want to answer the question Magna Lighting Inc. produces and sells lightingfixtures. An entry light has a total cost of Dollar125 per unit, of which $80 is product cost and$45 is selling and administrative expenses. Inaddition, the total cost of $125 is made up of$90 variable cost and $35 fixed cost. The desiredprofit is $55 per unit.Determine the mark-up percentage on productcost.

Step 1: Introduction to the Markup PercentageThe markup percentage refers to the ratio of the profit…

Answered: Magna Lighting Inc. produces and sells…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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Bright Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole number.
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