Custom Graphics is a London printing company that bids on a wide variety of design and printing jobs. The owner of the company, Janet Solomon, prepares the bids for most jobs. Her cost budget for 20X1 follows:

Solomon has a target profit of £250,000 for 20X1. Compute the average target markup percentage for setting prices as a percentage of the following:

1. Materials plus labour.

2. Variable production cost of jobs (assume labour is a variable-cost resource).

3. Total production cost of jobs.

4. All variable costs.

5. All costs.

Transcribed Image Text:

Materials Labour Overhead Variable Fixed Total production cost of jobs Selling and administrative expenses Variable Fixed Total costs £300,000 150,000 £75,000 125,000 £ 350,000 250,000 450,000 £1,050,000 200,000 £1,250,000