Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $112 per unit. Additional information is as follows:

Variable Costs per Unit		Fixed Costs (total)
Direct materials	$ 34	Overhead	$ 51,900
Direct labor	55	General and administrative	40,900
Overhead	35
General and administrative	36

Using the variable cost method, what markup percentage to variable cost should be used?

Answer rating: 100% (QA)

To calculate the markup percentage using the variable cost method we first need to calculate the tot... View the full answer