Question - The predicted 2009 costs for Osaka Motors are as follows:
|
Variable
|
$100,000
|
Variable
|
$300,000
|
|
Fixed
|
230,000
|
Fixed
|
200,000
|
Average total assets for 2009 are predicted to be $8,000,000.
(a) If management desires a 11 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs?
(b) If the company desires a 8 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit?