Justin Manufacturing Company has the following budgeted costs for 20,000 units:
$$\begin{array} { l c r }
&\underline{\text { Variable Costs }}&\underline{\text { Fixed Costs }}\
\text { Manufacturing } & \$ 100,000 & \$ 175,000 \
\text { Selling \& Administrative } & \underline{\$ 50,000} & \underline{20,000} \
\text { Total } & \$ 150,000 & \$ 195,000
\end{array}$$ What is the initial selling price needed to obtain a target profit of $73,000 using the manufacturing cost markup method?

Question

Justin Manufacturing Company has the following budgeted costs for 20,000 units:
 $$\begin{array} { l c r } 
&\underline{\text { Variable Costs }}&\underline{\text { Fixed Costs }}\
\text { Manufacturing } & \$ 100,000 & \$ 175,000 \
\text { Selling \& Administrative } & \underline{\$ 50,000} & \underline{20,000} \
\text { Total } & \$ 150,000 & \$ 195,000
\end{array}$$ What is the initial selling price needed to obtain a target profit of $73,000 using the manufacturing cost markup method?

Quizplus · Accepted Answer

The Answer of Justin Manufacturing Company has the following budgeted costs for 20,000 units:
 $$\begin{array} { l c r } 
&\underline{\text { Variable Costs }}&\underline{\text { Fixed Costs }}\
\text { Manufacturing } & \$ 100,000 & \$ 175,000 \
\text { Selling \& Administrative } & \underline{\$ 50,000} & \underline{20,000} \
\text { Total } & \$ 150,000 & \$ 195,000
\end{array}$$ What is the initial selling price needed to obtain a target profit of $73,000 using the manufacturing cost markup method?

Justin Manufacturing Company Has the Following Budgeted Costs for 20,000