FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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An online virus-scan service provider, Whispering, is expanding its offerings to include an optimizing service to users-it can scan the
consumer's hard drive for duplicate files, suggest more efficient ways to save or archive photos and movies, and much more. The
problem is that the company's own cost information has been lost-not due to a virus but due to human error. Charlee, the office
manager, is trying to recreate some of the information to use in pricing Whispering's newest optimizing service. Here is what she was
able to dig up:
Known Information for Virus-ScanService
Selling price
$30 per scan
Gross margin %
50 %
Costs of Optimizing Service
Labor cost
$5 per scan
MOH cost (includes software, utilities, etc.)
$25 per scan
(a)
For Whispering's virus-scan service, calculate the current cost-plus markup percentage (based on service cost rather than full
cost, since the selling and administrative expense information has been lost). (Round answer to O decimal places, e.g. 15%.)
Markup percentage on service cost
%
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Transcribed Image Text:An online virus-scan service provider, Whispering, is expanding its offerings to include an optimizing service to users-it can scan the consumer's hard drive for duplicate files, suggest more efficient ways to save or archive photos and movies, and much more. The problem is that the company's own cost information has been lost-not due to a virus but due to human error. Charlee, the office manager, is trying to recreate some of the information to use in pricing Whispering's newest optimizing service. Here is what she was able to dig up: Known Information for Virus-ScanService Selling price $30 per scan Gross margin % 50 % Costs of Optimizing Service Labor cost $5 per scan MOH cost (includes software, utilities, etc.) $25 per scan (a) For Whispering's virus-scan service, calculate the current cost-plus markup percentage (based on service cost rather than full cost, since the selling and administrative expense information has been lost). (Round answer to O decimal places, e.g. 15%.) Markup percentage on service cost %
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