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Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 56,600 units of its sole product. Magpie desires a profit equal to a 21% rate of return on invested assets of $584,000. Fixed factory overhead cost $38,600 Fixed selling and administrative costs $8,000 Variable direct materials cost per unit $4.92 Variable direct labor cost per unit $1.88 Variable factory overhead cost per unit $1.13 Variable selling and administrative cost per unit $4.50 The markup percentage on the total cost for the company's product is ?

Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 56,600 units of its sole product. Magpie desires a profit equal to a 21% rate of return on invested assets of $584,000. Fixed factory overhead cost $38,600 Fixed selling and administrative costs $8,000 Variable direct materials cost per unit $4.92 Variable direct labor cost per unit $1.88 Variable factory overhead cost per unit $1.13 Variable selling and administrative cost per unit $4.50 The markup percentage on the total cost for the company's product is ?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 56,600 units of its sole product. Magpie desires a profit equal to a 21% rate of return on invested assets of $584,000. Fixed factory overhead cost $38,600 Fixed selling and administrative costs $8,000 Variable direct materials cost per unit $4.92 Variable direct labor cost per unit $1.88 Variable factory overhead cost per unit $1.13 Variable selling and administrative cost per unit $4.50 The markup percentage on the total cost for the company's product is ?
Transcribed Image Text:Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 56,600 units of its sole product. Magpie desires a profit equal to a 21% rate of return on invested assets of $584,000. Fixed factory overhead cost $38,600 Fixed selling and administrative costs $8,000 Variable direct materials cost per unit $4.92 Variable direct labor cost per unit $1.88 Variable factory overhead cost per unit $1.13 Variable selling and administrative cost per unit $4.50 The markup percentage on the total cost for the company's product is ?
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