Merlin Manufacturing Company has the following budgeted costs for 10,000 units:
$$\begin{array} { l c c }
&\underline{\text { Variable Costs }}&\underline{\text { Fixed Costs }}\
\text { Manufacturing } & \$ 100,000 & \$ 80,000 \
\text { Selling \& Administrative } & \underline{50,000} & \underline{10,000} \
\text { Total } & \$ 150,000 & \$ 90,000
\end{array}$$ Calculate the markup on variable costs needed to break even.

Question

Merlin Manufacturing Company has the following budgeted costs for 10,000 units:
 $$\begin{array} { l c c } 
&\underline{\text { Variable Costs }}&\underline{\text { Fixed Costs }}\
\text { Manufacturing } & \$ 100,000 & \$ 80,000 \
\text { Selling \& Administrative } & \underline{50,000} & \underline{10,000} \
\text { Total } & \$ 150,000 & \$ 90,000
\end{array}$$ Calculate the markup on variable costs needed to break even.

Quizplus · Accepted Answer

The Answer of Merlin Manufacturing Company has the following budgeted costs for 10,000 units:
 $$\begin{array} { l c c } 
&\underline{\text { Variable Costs }}&\underline{\text { Fixed Costs }}\
\text { Manufacturing } & \$ 100,000 & \$ 80,000 \
\text { Selling \& Administrative } & \underline{50,000} & \underline{10,000} \
\text { Total } & \$ 150,000 & \$ 90,000
\end{array}$$ Calculate the markup on variable costs needed to break even.

Merlin Manufacturing Company Has the Following Budgeted Costs for 10,000