Hartwig Company prepared the following budget for 20X4 for its product:
Hartwig has a target profit of $105,000 for 20X4.
-The average target profit percentage for setting prices as a percentage of total manufacturing costs would be

Question

Hartwig Company prepared the following budget for 20X4 for its product:
  Hartwig has a target profit of $105,000 for 20X4.
-The average target profit percentage for setting prices as a percentage of total manufacturing costs would be

Quizplus · Accepted Answer

To calculate the average target profit percentage for setting prices, we need to divide the target profit by total manufacturing costs and then multiply by 100.

Target profit = $105,000
Total manufacturing costs = $480,000 + $144,000 + $24,000 + $138,000 = $786,000

Average target profit percentage = ($105,000/$786,000) x 100 = 13.36%

Therefore, the closest answer is C) 119 percent.

Hartwig Company Prepared the Following Budget for 20X4 for Its