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

 

Transcribed Image Text:

Tech Com's predicted variable and fixed costs for next year are as follows: Variable Costs Fixed Costs Manufacturing Selling and administrative Total $405,000 $424,200 594,000 102,000 $507,000 $1,018,200 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. Direct materials Direct labor Variable Manufacturing overhead: Fixed $8 4 3 6 Total manufacturing costs $21 Variable selling and administrative costs for the webcam are $4 per unit. Management has set a target profit for next year of $300,000. Required a. Determine the markup percentage on variable costs required to earn the desired profit.. Note: Round your answer to the nearest whole percentage point. 264 *% b. Use variable cost markup to determine a suggested selling price for the webcam. $ 25.48 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 2.34 for 2.3555). Markup to cover fixed costs $ 200 Markup to provide for a profit $ 64 d. Determine the markup percentage on manufacturing costs required to earn the desired profit. Note: Round your answer to the nearest whole percentage point. 122.52 x% 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. $ 46.73 Tech Com's predicted variable and fixed costs for next year are as follows: Variable Costs Fixed Costs Manufacturing Selling and administrative Total $405,000 $424,200 594,000 102,000 $507,000 $1,018,200 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. Direct materials Direct labor Variable Manufacturing overhead: Fixed $8 4 3 6 Total manufacturing costs $21 Variable selling and administrative costs for the webcam are $4 per unit. Management has set a target profit for next year of $300,000. Required a. Determine the markup percentage on variable costs required to earn the desired profit.. Note: Round your answer to the nearest whole percentage point. 264 *% b. Use variable cost markup to determine a suggested selling price for the webcam. $ 25.48 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 2.34 for 2.3555). Markup to cover fixed costs $ 200 Markup to provide for a profit $ 64 d. Determine the markup percentage on manufacturing costs required to earn the desired profit. Note: Round your answer to the nearest whole percentage point. 122.52 x% 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. $ 46.73

Answer rating: 100% (QA)

a Desired profit 300000 Variable costs 594000 Markup percentage Desired Profit Variable C... View the full answer