Michael Products Co. has predicted the following costs for this year for 150,000 units:
| |
Manufacturing
|
Selling and Administrative
|
|
Variable
|
$400,000
|
$100,000
|
|
Fixed
|
300,000
|
150,000
|
|
Total
|
$700,000
|
$250,000
|
Calculate the markup on variable costs needed to achieve a target profit of $100,000.