Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment. The company would like to develop a unified approach to pricing its product line for next year using cost-plus pricing but does not know what cost base should be used. Last year, ONEC earned $150,000 of profit from sales of its products and would like to earn $225,000 next year. Last year, the company incurred the following costs: Manufacturing Costs: Variable 260,000.00 Fixed 160,000.00 Selling and Administraitve: Variable 90,000.00 Fixed 180,000.00 Calculate the Markup Percentage based on a cost basis of All variable and fixed costs. (provide your answer in % form to two decimal places, i.e. 37.428% = 37.43)
Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment. The company would like to develop a unified approach to pricing its product line for next year using cost-plus pricing but does not know what cost base should be used. Last year, ONEC earned $150,000 of profit from sales of its products and would like to earn $225,000 next year. Last year, the company incurred the following costs: Manufacturing Costs: Variable 260,000.00 Fixed 160,000.00 Selling and Administraitve: Variable 90,000.00 Fixed 180,000.00 Calculate the Markup Percentage based on a cost basis of All variable and fixed costs. (provide your answer in % form to two decimal places, i.e. 37.428% = 37.43)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment.
The company would like to develop a unified approach to pricing its product line for next year using cost-plus pricing but does not know what cost base should be used.
Last year, ONEC earned $150,000 of profit from sales of its products and would like to earn $225,000 next year.
Last year, the company incurred the following costs:
Manufacturing Costs:
Variable 260,000.00
Fixed 160,000.00
Selling and Administraitve:
Variable 90,000.00
Fixed 180,000.00
Calculate the Markup Percentage based on a cost basis of All variable and fixed costs. (provide your answer in % form to two decimal places, i.e. 37.428% = 37.43)
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