Becker Corporation has budgeted for the following costs for the next fiscal year Directmaterials$1,390,000 Directlabor840,000 Manufacturing overhead
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Question:
Becker Corporation has budgeted for the following costs for the next fiscal year
Directmaterials$1,390,000
Directlabor840,000
Manufacturing overhead
Variable750,000
Fixed840,000
Selling and administrative
Variable380,000
Fixed680,000
Totalcosts$4,880,000
Becker Co., plans to achieve an annual target operating income of $1,000,000.
Becker Co., uses cost plus pricing for its products.If variable costs are used as the cost base for the purposes of setting prices determine the markup (as a % of variable costs) that Becker Co., should use in its pricing decisions.Show supporting
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