Price Setting: Multiple Products

Tech Com's predicted variable and fixed costs for next year are as follows:

Tech Com is a small company producing a wide variety of computer devices. Per$-$unit manufacturing cost information about one of these products, a webcam, is as follows.

Variable selling and administrative costs for the webcam are $\backslash (\backslash$$ $4\backslash )$ per unit. Management has set a target profit for next year of $\backslash$$$390,000.$ a$.$ Determine the markup percentage on variable costs required to earn the desired profit.

Note: Round your answer to the nearest whole percentage point.

$\backslash (\backslash$times $\backslash$quad $\backslash \%\backslash )$

b$.$ Use variable cost markup to determine a suggested selling price for the webcam. $\backslash (\backslash$$ $\backslash )$

c$.$ For the webcam, break the markup on variable costs into separate parts for fixed costs and profit.

Note: Round each of your answers below to two decimal places $($for example, enter $2\mathrm{.}34$ for $2\mathrm{.}3555).$

Markup to cover fixed costs $\backslash$$

Markup to provide for a profit $\backslash$$

d$.$ Determine the markup percentage on manufacturing costs required to earn the desired profit.

Note: Round your answer to the nearest whole percentage point.

$\backslash (\backslash$times $\backslash$quad $\backslash )\backslash \%$

e$.$ Use the manufacturing costs markup to determine a suggested selling price for the webcam.

Note: Use the rounded percentage from part $($d$)$ in your calculation.

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