Computing Markups
The predicted 2009 costs for Osaka Motors are as follows:
| Variable |
$100,000 |
Variable |
$300,000 |
| Fixed |
230,000 |
Fixed |
200,000 |
Average total assets for 2009 are predicted to be $8,000,000.
(a) If management desires a 11 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answers to the nearest whole percent.)
(b) If the company desires a 8 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? (Round your answers to the nearest whole percent.)