Week 5 homework

1.
Question :
Related to Problem 1, compute the average markup percentage for setting prices as a percentage of the full cost of the product.

Student Answer: Direct materials $60,000 Direct manufacturing labor $40,000 Factory overhead-variable $30,000 Factory overhead-Fixed $50,000 Selling and administrative expenses-variable $20,000 Selling and administrative expenses-Fixed $30,000 Full cost of the product $230,000 Sales = $300,000 Profit = $300,00 - $230,000 = $70,000 Average markup percentage = 70,000/230,000 x 100 = 30.43% Instructor Explanation:
$60,000 + $40,000 + $30,000 + $50,000 + $20,000 + $30,000 = $230,000 ($300,000 - $230,000) / $230,000 = 30.4%

Points Received:
5 of 5 Comments:

Question 2.
Question :
Related to Problem 1, compute the average markup percentage for setting prices as a percentage of the variable cost of the product.

Student Answer: Direct materials $60,000 Direct manufacturing labor $40,000 Factory overhead-variable $30,000 Selling and administrative expenses-variable $20,000 Variable cost of the product $150,000 Sales = $300,000 Profit = $300,00 - $150,000 = $150,000 Average markup percentage = 150,000/150,000 x 100 = 100% Instructor Explanation:
$60,000 + $40,000 + $30,000 + $20,000 = $150,000 ($300,000 - $150,000) / $150,000 = 100%

Points Received:
5 of 5 Comments:

Question 3.
Question :
Related to Problem 1, compute the average markup percentage for setting prices as a percentage of the variable manufacturing costs.

Student Answer: Direct materials $60,000 Direct manufacturing labor $40,000 Factory overhead-variable $30,000 Variable manufacturing cost of the product $130,000 Sales = $300,000 Profit = $300,00 - $130,000 = $170,000 Average markup percentage = 170,000/130,000 x 100 = 130.77% Instructor Explanation:
$60,000 + $40,000 + $30,000 = $130,000 ($300,000 - $130,000) / $130,000 = 130.8%

Points Received:
5 of 5 Comments:

Question 4.
Question :
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