Johnson Products Co. has predicted the following costs for this year for 150,000 units:
$$\begin{array} { l c c }
& \underline{\text { Manufacturing }} & \underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 200,000 & \$ 50,000 \
\text { Fixed } & \underline{150,000} & \underline{75,000} \
\text { Total } & \$ 350,000 & \$ 125,000
\end{array}$$ Calculate the markup on variable costs needed to achieve a target profit of $100,000.

Question

Johnson Products Co. has predicted the following costs for this year for 150,000 units:
 $$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} & \underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 200,000 & \$ 50,000 \
\text { Fixed } & \underline{150,000} & \underline{75,000} \
\text { Total } & \$ 350,000 & \$ 125,000
\end{array}$$ Calculate the markup on variable costs needed to achieve a target profit of $100,000.

Quizplus · Accepted Answer

The Answer of Johnson Products Co. has predicted the following costs for this year for 150,000 units:
 $$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} & \underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 200,000 & \$ 50,000 \
\text { Fixed } & \underline{150,000} & \underline{75,000} \
\text { Total } & \$ 350,000 & \$ 125,000
\end{array}$$ Calculate the markup on variable costs needed to achieve a target profit of $100,000.

Johnson Products Co Calculate the Markup on Variable Costs Needed to Achieve a Year