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Cost-Based Pricing




Cost-Based Pricing;and Markups with Variable Costs;Compu Services provides computerized inventory consulting. The office and computer expenses are $400,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $20 of variable costs.;(a) If the company desires a profit of $140,000, what should it charge per hour?;$Answer;(b) What is the markup on variable costs if the desired profit is $160,000?;Answer %;(c) If the desired profit is $160,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit?;Markup to cover unassigned costs Answer %;Markup to cover desired profits Answer %


Paper#20788 | Written in 18-Jul-2015

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