Foley Ltd. has predicted the following costs for this year for 100,000 units:
Required:

a.
What is the markup on variable costs needed to achieve a target profit of £200,000?
b.
What is the initial unit selling price needed to obtain a target profit of £200,000 using the variable cost markup method?
c.
What is the manufacturing cost markup needed to obtain a target profit of £200,000?

Question

Foley Ltd. has predicted the following costs for this year for 100,000 units:
Required:
  
a.
What is the markup on variable costs needed to achieve a target profit of £200,000?
b.
What is the initial unit selling price needed to obtain a target profit of £200,000 using the variable cost markup method?
c.
What is the manufacturing cost markup needed to obtain a target profit of £200,000?

Quizplus · Accepted Answer

The Answer of Foley Ltd. has predicted the following costs for this year for 100,000 units:
Required:
  
a.
What is the markup on variable costs needed to achieve a target profit of £200,000?
b.
What is the initial unit selling price needed to obtain a target profit of £200,000 using the variable cost markup method?
c.
What is the manufacturing cost markup needed to obtain a target profit of £200,000?

Foley Ltd Has Predicted the Following Costs for This Year for for 100,000