Build_a_Spreadsheet_15_41

Build_a_Spreadsheet_15_41 - 20% of the current selling...

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DATA INPUT Market Price $195 Markup 25% Direct Material $30 Direct Labor $75 Manufacturing overhead $50 Selling and Admin Expenses $25 SOLUTION 2. The current selling price is $225 Direct Material $30 Direct Labor $75 Manufacturing overhead $50 Selling and Administrative Costs $25 Total Cost $180 Markup ($180*25%) $45 Selling Price $225 3. Leno's markup is $45 which is
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Unformatted text preview: 20% of the current selling price $225 ($45/$225) To achieve a 20% markup on a $195 selling price the company must reduce its costs by $24.00 Markup as % of Price 20% Selling Price $195.00 Less 20% Markup ($195*20%) $39.00 Target Cost $156.00 Current Cost $180.00 Less: Target Cost $156.00 Required Cost Reduction $24.00...
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