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cost-based pricing and markups with variable costs computer consultants provides computerized inventory consulting. the office and computer expenses are $830,000 annually and are not assigned to specific jobs. the consulting hours available for the year total 18,000, and the average consulting hour has $40 of variable costs. (a) if the company desires a profit of $250,000, what should it charge per hour? round to the nearest cent. $answer (b) what is the markup on variable costs if the desired profit is $322,000? round to the nearest whole percent. answer % (c) if the desired profit is $100,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? round to the nearest whole percent. markup to cover unassigned costs answer % markup to cover desired profits answer %

Sagot :

Cost-based evaluating is a valuing technique used to decide the selling cost of an item founded on the expense of making that item. To arrive at the selling price, a margin known as a markup percentage is added to the total cost.

What is pricing based on costs?

Simply put, cost based pricing is a pricing strategy in which a company increases the price of a product by deducting the cost of manufacturing and production. The strategy frequently involves increasing one unit's production costs by a predetermined percentage.

Cost-plus pricing or cost-based pricing?

Surprisingly, cost-based pricing looks like this: adding a standard margin to the cost of a product or service after calculating its cost. If a widget costs $2.50 to make, for instance, a widget with a standard margin of 50% would cost $5.00.

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