Hordel Company Needs to Determine a Markup for a New

question 79

Multiple Choice

Hordel Company needs to determine a markup for a new product.Hordel expects to sell 5,000 units and wants a target profit of $82 per unit.Additional information is as follows: $$\begin{array} { l r } \text { Variable product cost per unit } & \$ 79 \\\text { Variable administrative cost per unit } & 21 \\\text { Total fixed overhead } & 42,000 \\\text { Total fixed administrative } & 31,000\end{array}$$ Using the variable cost method,what markup percentage to variable cost should be used?

• A)80.1%
• B)98.20%
• C)94.1%
• D)91.7%
• E)96.6%

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