Calculate the company mark-up percentage

Assignment Help Managerial Accounting

Reference no: EM132777215

Question - During the last fiscal year, MLX Inc had revenues and expenses of $250,000 and $150,000 respectively on sales of 10,000 units. The company had net operating assets of $200,000. The company's required rate of return for approval of projects is 20%. MLX's total fixed costs were $60,000. The company's expenses included $30,000 of selling, general and administrative expenses, $15,000 of were variable. The company has a practical production capacity of 20,000 units. Calculate the company's mark-up percentage on absorption cost if the company expects to sell 15,000 units during the next fiscal year.

Reference no: EM132777215

Questions Cloud

What is the firm debt ratio : Dearborn Supplies has total sales of $208 million, assets of $100 million, a return on equity of 28 percent, What is the firm debt ratio

Homeland and balancing privacy and civil liberties : Discuss the challenges associated with protecting the homeland and balancing privacy and civil liberties.

How much did the preferred shareholders receive : A sports equipment company issued a $3 cumulative preferred stock issue. How much did the preferred shareholders receive in 2000

What is the intrinsic value of ABC stock : The risk free rate of return is 5 percent, the market risk premium is 10 percent, Dividends are expected to grow by 2 percent. What's the intrinsic value of ABC

Calculate the company mark-up percentage : Calculate the company's mark-up percentage on absorption cost if the company expects to sell 15,000 units during the next fiscal year

Prepare schedule of cost of goods manufactured and sold : Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Prepare schedule of cost of goods manufactured and sold

What would be the labor efficiency variance : Variable Manufacturing Overhead (based on direct labor hours) Total: 2,340; Per Unit of product: $1.20. What would be the labor efficiency variance

Determine the fixed asset turnover ratio for year : Fixed Asset Turnover Ratio - Financial statement data for years ending December 31 for Dennis Company follow: Determine the fixed asset turnover ratio for Year

What would be the equivalent units of production : If 10,000 units were transferred to the next processing center during the month, what would be the equivalent units of production for conversion costs

User Account

All Pages