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Cost-Based Pricing and Markups with Variable Costs

Compu Services provides computerized inventory consulting. The office and computer expenses are $400,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $20 of variable costs. If the desired profit is $160,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit?

Markup to cover unassigned costs Answer %

Markup to cover desired profits Answer %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92865219

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