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 variable 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 variable manufacturing costs would be

Quizplus · Accepted Answer

The average target profit percentage for setting prices as a percentage of variable manufacturing costs is typically calculated by adding a markup to cover fixed costs and desired profit. A 220 percent markup is a common target to ensure sufficient profit margin.

Hartwig Company Prepared the Following Budget for 20X4 for Its