What is the markup on variable costs needed to break

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Reference no: EM13599746

Faulkner Corporation has the following budgeted costs for 20,000 units:

  • Variable Costs
  • Fixed Costs
  • Manufacturing $250,000 $60,000
  • Selling and Administrative 150,000 40,000
  • Total $400,000 $100,000

a. What is the markup on variable costs needed to break even?
b. What is the markup on variable costs needed to obtain a target profit of $75,000?

Reference no: EM13599746

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