ACCT 200 1st Edition Lecture 27 Outline of Last Lecture I Cost Plus Pricing II Market Based Pricing Outline of Current Lecture I Markup II Target Cost III Homework 12 15 IV Homework 12 18 Current Lecture I Markup a Markup percentage total profit total cost b Markup profit II Target Cost a Target cost preset price desired profit b You must control cost to make a profit c Desired profit investment x return of investment III 12 15 a 1080000 b 168 75 c 1080000 13500000 8 d 168 75 x 08 13 5 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute 168 75 13 5 182 25 IV 12 18 a price will be set at market price 24000 b profit 24000 x 2 4800 24000 TC 4800 TC 19200 They cannot receive a 20 profit with their current estimates They would need to cut costs in some way to keep the price at 24000
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