Nancy Company has budgeted sales of $750,000 with the following budgeted costs:
Direct materials $210,000
Direct manufacturing labor 110,000
Factory overhead
Variable 70,000
Fixed 100,000
Selling and administrative expenses
Variable 50,000
Fixed 60,000
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.