The predicted 2017 costs for Beta Motors are as follows:
$$\begin{array} { c }
\underline{\text { Manufacturing Costs }} & \
\begin{array}{lcr}
\text { Variable } && \$ 200,000 \
\text { Fixed } && 440,000
\end{array}
\end{array}
\begin{array} { c }
\underline{\text { Selling and Administrative Costs }}\
\begin{array}{lcr}
\text { Variable } && \$ 600,000 \
\text { Fixed } && 300,000
\end{array}
\end{array}
$$ Average total assets for 2017 are predicted to be $7,000,000.
If the company desires a 10 percent rate of return on total assets, the markup percentage on total manufacturing costs for unassigned costs would be:

Question

The predicted 2017 costs for Beta Motors are as follows:
$$\begin{array} { c } 
\underline{\text { Manufacturing Costs }} & \
\begin{array}{lcr}
\text { Variable } && \$ 200,000 \
\text { Fixed } && 440,000
\end{array}
\end{array}
\begin{array} { c } 
\underline{\text { Selling and Administrative Costs }}\
\begin{array}{lcr}
\text { Variable } && \$ 600,000 \
\text { Fixed } && 300,000
\end{array}
\end{array}
$$ Average total assets for 2017 are predicted to be $7,000,000.
If the company desires a 10 percent rate of return on total assets, the markup percentage on total manufacturing costs for unassigned costs would be:

Quizplus · Accepted Answer

The Answer of The predicted 2017 costs for Beta Motors are as follows:
$$\begin{array} { c } 
\underline{\text { Manufacturing Costs }} & \
\begin{array}{lcr}
\text { Variable } && \$ 200,000 \
\text { Fixed } && 440,000
\end{array}
\end{array}
\begin{array} { c } 
\underline{\text { Selling and Administrative Costs }}\
\begin{array}{lcr}
\text { Variable } && \$ 600,000 \
\text { Fixed } && 300,000
\end{array}
\end{array}
$$ Average total assets for 2017 are predicted to be $7,000,000.
If the company desires a 10 percent rate of return on total assets, the markup percentage on total manufacturing costs for unassigned costs would be:

The Predicted 2017 Costs for Beta Motors Are as Follows