Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per unit. Additional information is as follows:

Variable product cost per unit	$	79
Variable administrative cost per unit		21
Total fixed overhead		42,000
Total fixed administrative		31,000

Using the variable cost method, what markup percentage to variable cost should be used?

Answer rating: 100% (QA)

To determine the markup percentage on variable costs that Hordel Company should use to achieve a tar... View the full answer