Kulvekowski Company Has Budgeted Sales of $30,000 with the Following

question 95

Multiple Choice

Kulvekowski Company has budgeted sales of $30,000 with the following budgeted costs:
$$\begin{array} { l l } \text { Direct materials } & \$ 6,300 \\\text { Direct labor } & \$ 4,100 \\\text { Variable factory overhead } & \$ 3,700 \\\text { Fixed factory overhead } & \$ 5,600 \\\text { Variable selling and administrative costs } & \$ 2,400 \\\text { Fixed selling and administrative costs } & \$ 3,200\end{array}$$
What is the average target markup percentage for setting prices as a percentage of total costs?

• A) 15.7%
• B) 18.6%
• C) 20.1%
• D) none of the above

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Definitions:

Non-controlling Interest

A shareholder's equity in a portion of a subsidiary that is not owned, directly or indirectly, by the company which owns more than half of the subsidiary.

Consolidated Group

A group of companies composed of a parent and its subsidiaries, whose financial statements are prepared as one entity.

Equity

The value of shares issued by a company, representing ownership interest held by shareholders.

Share Capital

The total amount of funds raised by a company through the issuance of shares to its shareholders.