Valent Co. has predicted the following costs for this year for 300,000 units:
$$\begin{array} { l c c }
& \underline{\text { Manufacturing }} & \underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 800,000 & \$ 400,000 \
\text { Fixed } & \underline{300,000} & \underline{300,000} \
\text { Total } & \$ 1,100,000 & \$ 700,000
\end{array}$$ Calculate the manufacturing cost markup needed to obtain a target profit of $950,000.

Question

Valent Co. has predicted the following costs for this year for 300,000 units:
 $$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} & \underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 800,000 & \$ 400,000 \
\text { Fixed } & \underline{300,000} & \underline{300,000} \
\text { Total } & \$ 1,100,000 & \$ 700,000
\end{array}$$ Calculate the manufacturing cost markup needed to obtain a target profit of $950,000.

Quizplus · Accepted Answer

The Answer of Valent Co. has predicted the following costs for this year for 300,000 units:
 $$\begin{array} { l c c } 
& \underline{\text { Manufacturing }} & \underline{\text { Selling and Administrative }} \
\text { Variable } & \$ 800,000 & \$ 400,000 \
\text { Fixed } & \underline{300,000} & \underline{300,000} \
\text { Total } & \$ 1,100,000 & \$ 700,000
\end{array}$$ Calculate the manufacturing cost markup needed to obtain a target profit of $950,000.

Valent Co Has Predicted the Following Costs for This Year for for 300,000