Kirk Co. manufactures mobile cellular equipment and develops a price for the product by using a variable cost concept. Kirk incurs variable costs of $1,900,000 in the production of 100,000 units. Fixed costs total $50,000. The company employs $4,725,000 of assets and wishes to earn a profit equal to a 10% rate of return on assets. a.  Compute a markup percentage based on the variable costs concept. Round your answer to one decimal place. fill in the blank 1 % b.  Determine a selling price. Round your answer to two decimal places. $fill in the blank 2

Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter7: Cost-volume-profit Analysis
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Kirk Co. manufactures mobile cellular equipment and develops a price for the product by using a variable cost concept. Kirk incurs variable costs of $1,900,000 in the production of 100,000 units. Fixed costs total $50,000. The company employs $4,725,000 of assets and wishes to earn a profit equal to a 10% rate of return on assets.

a.  Compute a markup percentage based on the variable costs concept. Round your answer to one decimal place.
fill in the blank 1 %

b.  Determine a selling price. Round your answer to two decimal places.
$fill in the blank 2

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