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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
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The income from operations and the amount of invested assets in each division of Devon Industries are as follows:
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