Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 59,000 units of its sole product. Magpie desires a profit equal to a 23% return on invested assets of $570,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit The markup percentage on total cost for Magpie's product is Oa. 16.5% b. 21.5% > Oc. 13.2% Od. 28.1% $39,500 7,700 5.13 1.88 1.13 4.50

Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 59,000 units of its sole product. Magpie desires a profit equal to a 23% return on invested assets of $570,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit The markup percentage on total cost for Magpie's product is Oa. 16.5% b. 21.5% > Oc. 13.2% Od. 28.1% $39,500 7,700 5.13 1.88 1.13 4.50

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 7BE

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