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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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%
| Line Item Description | Amount |
|---|---|
| Fixed |
$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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