The predicted 2014 costs for Osaka Motors are as follows:
Manufacturing Costs Selling and Administrative Costs

Average total assets for 2014 are predicted to be $5,000,000.
(a) If management desires a 12 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answer to the nearest whole percent.)
Markup on variable costs Answer %
Markup on manufacturing costs Answer %
(b) If the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for
(1) Unassigned costs and
(2) Desired profit? (Round your answer to the nearest whole percent.)
Markup to cover unassigned costs Answer %
Markup to cover desired profit Answer %

Transcribed Image Text:

Variable S 100,000 Variable S300,000 Fixed 220,000 Fixed 200,000