Hordel Company needs to determine a markup for a new product…
Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per unit. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials $ 19 Overhead $ 42,000 Direct labor 40 General and administrative 31,000 Overhead 20 General and administrative 21 Using the variable cost method, what markup percentage to variable cost should be used?