Question

Question 1. Consider the following data from Henderson Company’s budgeted income statement (in thousands of dollars):...

Question 1.

Consider the following data from Henderson Company’s budgeted income statement (in thousands of dollars):

Target sales

Variable costs

       Manufacturing

       Selling and administrative

       Total variable costs

Fixed costs

     Manufacturing

       Selling and administrative

Total fixed costs

Total of all costs

Operating income

$96,750

32,250

6,450

38,700

8,600

6,450

15,050

53,750

$43,000

Compute the following markup percentages that would be used for obtaining the same target sales as a percentage of:

  1. Total variable costs,
  2. Full costs, and
  3. Variable manufacturing costs

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