Brief Exercise 8-4 Morales Corporation produces microwave ovens. The following p

Question

Brief Exercise 8-4 Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $32, direct labor $24, variable manufacturing overhead $17, fixed manufacturing overhead $44, variable selling and administrative expenses $19, and fixed selling and administrative expenses $33. Its desired ROI per unit is $29.88. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50.) Markup percentage LINK TO TEXT

Explanation / Answer

Calculate markup percentage :

Desired ROI per unit+Selling and administrative expense per unit = Markup percentage*Manufacturing cost per unit

29.88+52 = X*117

81.88/117 = X

X(markup percentage) = 69.98%

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