Question: Cost-Based Pricing and Markups with Variable Costs Computer Consultants provides computerized inventory consulting. The office and computer expenses are $830,000 annually and are not assigned
Cost-Based Pricing and Markups with Variable Costs Computer Consultants provides computerized inventory consulting. The office and computer expenses are $830,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 18,000, and the average consulting hour has $40 of variable costs. (a) If the company desires a profit of $250,000, what should it charge per hour? Round to the nearest cent. $Answer (b) What is the markup on variable costs if the desired profit is $322,000? Round to the nearest whole percent. Answer % (c) If the desired profit is $100,000, 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 Answer % Markup to cover desired profits Answer %
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