How would you calculate the markup on fixed cost to obtain a target profit? Plea
ID: 2484939 • Letter: H
Question
How would you calculate the markup on fixed cost to obtain a target profit? Please provide formula.Budgeted cost are for 10,000 units
Variable cost Fixed Cost Manufacturing 200,000 75,000 Selling and admin. 100,000. 25,000 Total. 300,000 100,000
What is the markup on FIXED cost needed to obtain a target profit of $125,000?
a) 300%
B) 400%
C) 150%
D) 425% How would you calculate the markup on fixed cost to obtain a target profit? Please provide formula.
Budgeted cost are for 10,000 units
Variable cost Fixed Cost Manufacturing 200,000 75,000 Selling and admin. 100,000. 25,000 Total. 300,000 100,000
What is the markup on FIXED cost needed to obtain a target profit of $125,000?
a) 300%
B) 400%
C) 150%
D) 425%
Budgeted cost are for 10,000 units
Variable cost Fixed Cost Manufacturing 200,000 75,000 Selling and admin. 100,000. 25,000 Total. 300,000 100,000
What is the markup on FIXED cost needed to obtain a target profit of $125,000?
a) 300%
B) 400%
C) 150%
D) 425%
Explanation / Answer
D) 425%
mark up=$300,000+$125,000=$425,000.
%=425,000/100,000=425%
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