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The predicted 2017 costs for Gamma Motors are as follows: Manufacturing Costs Variable: $250,000 Fixed: $450,000 Selling & Administrative Costs...

The predicted 2017 costs for Gamma Motors are as follows:


Manufacturing Costs

Variable: $250,000

Fixed: $450,000


Selling & Administrative Costs

Variable: $600,000

Fixed: $300,000


Average total assets for 2017 are predicted to be $5,000,000.


If the company desires a 10% rate of return on total assets, what is the markup percentage on total manufacturing costs for the desired profit?

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2 comments
  • My above answer has mistake, the markup petcentage will be 71.4% (500000/700000) and ignore the check calculation as it is not applicable here
    • Zain.Rajani
    • Aug 13, 2018 at 2:07am
  • Also ignore the last paragraph
    • Zain.Rajani
    • Aug 13, 2018 at 2:10am

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