Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Target profit is $100,000; total fixed costs are $120,000, and total variable costs are $500,000, the markup percentage is

Sagot :

ayokenny2001

The markup percentage to the variable cost using the variable cost method is 40%.

What is markup percentage?

The markup percentage to the variable cost using the variable cost method can be obtained by dividing the addition of the target profit and total fixed cost by the total variable cost as follows.

We know that:

Total fixed cost

= Fixed overhead costs + Fixed selling and administrative costs

= $120,000 + $50,00

= $170,000

The markup percentage to the variable cost

= (Target profit + Total fixed cost) / Total variable cost

= ($100,000 + $170,000) / $675,000

= $270,000 / $675,000

= 0.40, or 40%.

Hence, the markup percentage to the variable cost using the variable cost method is 40%.

Learn more about markup percentage here : https://brainly.com/question/26085685

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.