The Heritage Foundation reported the following information:

Required:
Compute the markup component and the prospective selling price for each cost base at the Heritage Foundation.

Question

The Heritage Foundation reported the following information:

Required:
Compute the markup component and the prospective selling price for each cost base at the Heritage Foundation.

Quizplus · Accepted Answer

A)
Markup component:
Variable manufacturing cost: [($425 × .60)] = $255
Variable cost of the product: [($550 × .45)] = $247.50
Manufacturing cost: [($520 × .50)] = $260
Full cost of the product: [($710 × .10)] = $71
Prospective selling price:
Variable manufacturing cost: [($425 + $255)] = $680
Variable cost of the product: [($550 + $247.50)] = $797.50
Manufacturing Cost: [($520 + $260)] = $780
Full cost of the product: [($710 + $71)] = $781

The Heritage Foundation Reported the Following Information