Calculate the company mark-up percentage on absorption cost

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Reference no: EM132770204

Problem 1: 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: EM132770204

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