Magna Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of Dollar 125 per unit, of which $80 is product cost and $45 is selling and administrative expenses. In addition, the total cost of $125 is made up of $90 variable cost and $35 fixed cost. The desired profit is $55 per unit. Determine the mark-up percentage on product cost.

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 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...
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Magna Lighting Inc. produces and sells lighting
fixtures. An entry light has a total cost of Dollar
125 per unit, of which $80 is product cost and
$45 is selling and administrative expenses. In
addition, the total cost of $125 is made up of
$90 variable cost and $35 fixed cost. The desired
profit is $55 per unit.
Determine the mark-up percentage on product
cost.
Transcribed Image Text:Magna Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of Dollar 125 per unit, of which $80 is product cost and $45 is selling and administrative expenses. In addition, the total cost of $125 is made up of $90 variable cost and $35 fixed cost. The desired profit is $55 per unit. Determine the mark-up percentage on product cost.
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