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    Nancy Corporation - Average Markup Percentage

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    Problem 1 - Nancy Company has budgeted sales of $300,000 with the following budgeted costs:

    Direct materials $60,000
    Direct manufacturing labor 40,000

    Factory overhead

    Variable 30,000

    Fixed 50,000

    Selling and administrative expenses

    Variable 20,000

    Fixed 30,000

    Question 1: Compute the average markup percentage for setting prices as a percentage of the full cost of the product

    Question 2: Compute the average markup percentage for setting prices as a percentage of the variable cost of the product

    Question 3: Compute the average markup percentage for setting prices as a percentage of the variable manufacturing costs

    © BrainMass Inc. brainmass.com February 24, 2021, 6:08 pm ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost/nancy-corporation-average-markup-percentage-283857

    Solution Preview

    1 - Full Cost = (60+40+30+50) = 180,000

    Markup % = (300-180)/180 = 66.67%

    2 - Variable Cost ...

    Solution Summary

    The solution computes Nancy Corporation - Average Markup Percentage for setting prices.

    $2.19

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