Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Get quick and reliable solutions to your questions from a community of seasoned experts on our user-friendly platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our 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 hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.