Yakking Co

question 37

Short Answer

Yakking Co. manufactures mobile cellular equipment and develops a price for the product by using the variable cost concept. Yakking incurs variable costs of $1,900,000 in the production of 100,000 units while 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 variable cost.
(b) Determine a selling price.
Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places.

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Definitions:

Occipital Lobes

The area of the brain situated at the rear of the skull, tasked with interpreting visual data.

EEG

Electroencephalography, a monitoring method to record electrical activity of the brain, used in the diagnosis of brain disorders.

Synapse

The junction between two neurons where information is transmitted from one neuron to another.

Agonist

A chemical or drug that binds to receptors in the brain and activates them, often mimicking the effects of naturally occurring substances.