Bugnugget\'s Crawfish Emporium specializes in the manufacturing and sales of spe

Question

Bugnugget's Crawfish Emporium specializes in the manufacturing and sales of specialty mudbug novelties and nibbles. Bugnugget has budgeted sales of $1,250,000 for 2XX9. Bugnugget also has the following budgeted costs for 2XX9: Direct Materials, $25,000 Direct Manufacturing Labor, $215,654 Variable Factory Overhead, $397,500 Fixed Factory Overhead, $150,000 Variable Selling & Administrative Expenses, $175,000 Fixed Selling & Administrative Expenses, $105,000 Compute the average markup percentage for setting prices as a percentage of the full cost of the product.

Explanation / Answer

Sales = 1250000 expenses DM = 25000 DM labour = 215654 variable FO = 397500 fixed FO = 150000 Variable selling and admin = 175000 fixed selling and admin = 105000 total expenses = 1068154 profit = 181846 profit/total expense = 17.02%

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