Blake Sales Co. has predicted the following costs for this year for 500,000 units:
$$\begin{array} { l c c }
& \underline{\text { Manufacturing }} &\underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 250,000 & \$ 125,000 \
\text { Fixed } & \underline{600,000} & \underline{150,000} \
\text { Total } & \$ 850,000 & \$ 275,000
\end{array}$$ What is the markup on variable manufacturing costs needed to break even?

Question

Blake Sales Co. has predicted the following costs for this year for 500,000 units:
$$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} &\underline{\text { Selling and Administrative }}  \
\text { Variable } & \$ 250,000 & \$ 125,000 \
\text { Fixed } & \underline{600,000} & \underline{150,000} \
\text { Total } & \$ 850,000 & \$ 275,000
\end{array}$$ What is the markup on variable manufacturing costs needed to break even?

Quizplus · Accepted Answer

The Answer of Blake Sales Co. has predicted the following costs for this year for 500,000 units:
$$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} &\underline{\text { Selling and Administrative }}  \
\text { Variable } & \$ 250,000 & \$ 125,000 \
\text { Fixed } & \underline{600,000} & \underline{150,000} \
\text { Total } & \$ 850,000 & \$ 275,000
\end{array}$$ What is the markup on variable manufacturing costs needed to break even?

Blake Sales Co What Is the Markup on Variable Manufacturing Costs Needed to Year