Yakking Co

question 29

Essay

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.

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Definitions:

Battle Of San Jacinto

The decisive battle of the Texas Revolution fought in 1836, where Texas forces defeated Mexican troops, leading to Texas independence.

Texas

A state in the southern United States known for its large size, diverse landscapes, and significant historical events such as the Alamo.

Sam Houston

An American statesman, soldier, and politician, significant for his role in bringing Texas into the United States and serving as its first president.

Slavery

A system in which people are treated as property to be bought, sold, and forced into labor without rights, historically widespread across the world and a significant cause of social and political strife.