Red Grass Company produces high definition television sets. The following information is available for this product: Fixed cost per unit $250 Variable cost per unit $750 Total cost per unit $1,000 Desired ROI per unit $300 Red Grass Company’s markup percentage would be Group of answer choices 60%. 40%. 30%. 120%.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Red Grass Company produces high definition television sets. The following information is available for this product:
Fixed cost per unit $250
Variable cost per unit $750
Total cost per unit $1,000
Desired
Red Grass Company’s markup percentage would be
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