Question - Oma Company has the following budgeted costs for 10,000 units:
|
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Variable Costs
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Fixed Costs
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|
Manufacturing
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$200,000
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$100,000
|
|
Selling & Administrative
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175,000
|
50,000
|
|
Total
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$375,000
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$150,000
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Required -
a. What is the markup on variable costs needed to break even?
b. What is the markup on variable costs needed to obtain a target profit of $75,000?
c. What is the markup on manufacturing costs needed to obtain a target profit of $75,000?