Catherine Co. has predicted the following costs for this year for 345,000 units:
$$\begin{array} { l c c }
& \underline{\text { Manufacturing }} &\underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 300,000 & \$ 125,000 \
\text { Fixed } & \underline{600,000} & \underline{150,000} \
\text { Total } & \$ 900,000 & \$ 300,000
\end{array}$$ What is the markup on selling and administrative costs needed to break even?

Question

Catherine Co. has predicted the following costs for this year for 345,000 units:
$$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} &\underline{\text { Selling and Administrative }}  \
\text { Variable } & \$ 300,000 & \$ 125,000 \
\text { Fixed } & \underline{600,000} & \underline{150,000} \
\text { Total } & \$ 900,000 & \$ 300,000
\end{array}$$ What is the markup on selling and administrative costs needed to break even?

Quizplus · Accepted Answer

The Answer of Catherine Co. has predicted the following costs for this year for 345,000 units:
$$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} &\underline{\text { Selling and Administrative }}  \
\text { Variable } & \$ 300,000 & \$ 125,000 \
\text { Fixed } & \underline{600,000} & \underline{150,000} \
\text { Total } & \$ 900,000 & \$ 300,000
\end{array}$$ What is the markup on selling and administrative costs needed to break even?

Catherine Co What Is the Markup on Selling and Administrative Costs Needed