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    Percentage markup

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    The following data pertain to Tall Company's commercial wood thrower:

    Variable manufacturing cost $400
    Applied fixed manufacturing cost 160
    Variable selling and administrative cost 60
    Allocated fixed selling and administrative cost 25

    Required:
    For each of the following cost bases, determine the appropriate percentage markup that will result in a price of $980 for the wood thrower. (Round percentages to nearest one-hundredth of a percent.)
    A. Variable manufacturing cost.
    B. Absorption manufacturing cost.
    C. Total cost.
    D. Total variable cost.

    © BrainMass Inc. brainmass.com October 9, 2019, 11:09 pm ad1c9bdddf
    https://brainmass.com/business/accounting/percentage-markup-246799

    Solution Preview

    Markup = (Price-Cost)/Cost
    Price= $980
    A. Variable manufacturing cost.
    Variable manufacturing cost = $400
    Markup = (980-400)/400 = ...

    Solution Summary

    The solution explains how to calculate the percentage markup based on variable manufacturing cost, absorption manufacturing cost, total cost and total variable cost.

    $2.19