Sampras Industries Budgeted the Following Costs for the Production of Its

question 126

Multiple Choice

Sampras Industries budgeted the following costs for the production of its one and only product, tennis balls, for the next fiscal year: $$\begin{array} { l c } \text { Materials } & \$ 35,000 \\\text { Labor } & 25,000 \\\text { Overhead: } & \\\text { Variable } & 30,000 \\\text { Fixed } & 15,000 \\\text { Selling and administrative: } \\\text { Variable } & 7,500 \\\text { Fixed } & \underline { 12,500 } \\\text { Total costs } & \$ 125,000\end{array}$$ Sampras Industries has a target profit of $30,000. The average target markup for setting prices as a percentage of total costs would be:

• A) 68%
• B) 47%
• C) 24%
• D) 19%

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Definitions:

Tomb Of Reliefs

An ancient burial site notable for its detailed reliefs carved into its walls, depicting everyday life and offering insights into the customs and culture of the people interred within.

Cerveteri

An ancient city in Italy, known for its Etruscan necropolis with elaborate tombs, reflecting the social and cultural life of the Etruscans.

Pectoral

An ornament on the chest.

Fibula

An ancient brooch or pin, typically used in Greek and Roman dress as a fastener or decorative item.