Question: Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory consulting. The office and computer expenses are $625,000 annually and are not assigned
Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory consulting. The office and computer expenses are $625,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $30 of variable costs. (a) If the company desires a profit of $100,000, what should it charge per hour? Round to the nearest cent. $AnswerCorrect (b) What is the markup on variable costs if the desired profit is $150,000? Round to the nearest whole percent. AnswerIncorrect % (c) If the desired profit is $60,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? Round to the nearest whole percent. Markup to cover unassigned costs AnswerIncorrect % Markup to cover desired profits AnswerIncorrect %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
