Alpine, Inc. sells a single product. The following information relates to the year just ended: Number...

  

Transcribed Image Text:

Alpine, Inc. sells a single product. The following information relates to the year just ended: Number of units sold: 40,000 Variable cost per unit: $200 Total fixed cost: $2,400,000 Operating income: $3,800,000 Required: A. Compute the company's selling price. B. Compute the percentage markup on total cost. Round your answer to two decimal places. C. Assume that Alpine desired to change its practice of computing a markup on total cost to a markup on variable cost. If the company wants to hold selling price constant, would the markup percentage increase or decrease? By how much? Alpine, Inc. sells a single product. The following information relates to the year just ended: Number of units sold: 40,000 Variable cost per unit: $200 Total fixed cost: $2,400,000 Operating income: $3,800,000 Required: A. Compute the company's selling price. B. Compute the percentage markup on total cost. Round your answer to two decimal places. C. Assume that Alpine desired to change its practice of computing a markup on total cost to a markup on variable cost. If the company wants to hold selling price constant, would the markup percentage increase or decrease? By how much?

Answer rating: 100% (QA)

A To compute the selling price we need to use the contribution margin per unit which is the selling ... View the full answer