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What are the markup percentages for total variable costs
Course:- Accounting Basics
Reference No.:- EM132082222




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Question - The predicted 2014 costs for Osaka Motors are as follows:

Variable

$ 100,000

Variable

$300,000

Fixed

220,000

Fixed

200,000

Average total assets for 2014 are predicted to be $5,000,000.

(a) If management desires a 12 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs?

(b) If the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit?




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