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

Explanation of Markup Percentage:The markup percentage is the percentage added to the total cost of…

Answered: Magpie Corporation uses the total 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 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...

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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 59,700 units of its sole product. Magpie desires a profit equal to a 22% rate of return on invested assets of $588,000. Fixed factory overhead cost $38,100 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.32 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 cost per unit for the production and sale of the company's product is
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Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 58,400 units of its sole product. Magpie desires a profit equal to a 19% return on invested assets of $642,000. Line Item Description Amount Fixed factory overhead cost $37,200 Fixed selling and administrative costs 7,600 Variable direct materials cost per unit 4.44 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 total cost for Magpie's product is a. 27.9% b. 16.4% c. 21.4% d. 13.1% Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. Fixed factory overhead cost - $38,700; Fixed selling and administrative costs - 7,500; Variable direct materials cost per unit - 4.60; 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 unit selling price for the company’s product is:

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