Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 59,000 units of its sole product. Magpie desires a profit equal to a 23% return on invested assets of $570,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit The markup percentage on total cost for Magpie's product is Oa. 16.5% b. 21.5% > Oc. 13.2% Od. 28.1% $39,500 7,700 5.13 1.88 1.13 4.50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and
sale of 59,000 units of its sole product. Magpie desires a profit equal to a 23% return on invested assets of
$570,000.
>
Fixed factory overhead cost
Fixed selling and administrative costs
Variable direct materials cost per unit
Variable direct labor cost per unit
Variable factory overhead cost per unit
Variable selling and administrative cost per unit
The markup percentage on total cost for Magpie's product is
Oa. 16.5%
b. 21.5%
Oc. 13.2%
Od. 28.1%
$39,500
7,700
5.13
1.88
1.13
4.50
Transcribed Image Text:Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 59,000 units of its sole product. Magpie desires a profit equal to a 23% return on invested assets of $570,000. > Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit The markup percentage on total cost for Magpie's product is Oa. 16.5% b. 21.5% Oc. 13.2% Od. 28.1% $39,500 7,700 5.13 1.88 1.13 4.50
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