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Old 02-05-2008, 03:54 AM   #24 (permalink)
chesebert
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Join Date: May 2004
Location: Ann Arbor, MI
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$150 sales price is a reasonable markup on the $15 raw cost.

15 (raw cost) + $15 (0.5hr labor) + overhead (20% of sales) = $60 cost

EBITA = $70; net income = 60% EBITA = $42 or 28% of sales.

seems fair to me.
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