Refer to the cost and production data for the Wave Darter in Exhibit 155. The target profit

Refer to the cost and production data for the Wave Darter in Exhibit 15–5. The target profit is $60,000.

Required:
Use the general formula for determining a markup percentage to compute the required markup percentages with the following two cost-plus formulas:
1. Variable manufacturing costs [formula (1) in Exhibit 15–5].
2. Absorption manufacturing cost [formula (2) inExhibit 15–5].

Transcribed Image Text:

Price and Cost Data Variable manufacturing cost Cost-Plus Pricing Formulas Varable manufactugMrkupVariabe .. 1 $925=S400+ (131.25%× $400-manufacturing + x manufacturng $400 percentage Applied fixed manufacturing cot.250 Absorption Absorption Markup x manufacturng percentage manufacturing cost Variable seling Allocated fixed selling 650 2 S925-S650 + (423%"x$650):manufacturing + cost 100 TotalMarkup Total cost peage cost Total cost $800 3$925:$800+ (15.63%" x$800) Variable manufacturing cost.. $400 Variable selling and administrativeot 50 Total Total Total variable cost $450 4 $925-$450 + (105.56%" x $450 : variable + | Markup p y variabe percentagecost "Based on planned monthly production of 40 units for 480 units per yaar. Rounded.