Apple allows customers to select different cases for the watches it produces and sells. Assume the following
Question:
Apple allows customers to select different cases for the watches it produces and sells. Assume the following data for the newest Apple Watch.
1. Compute cost per unit for an Apple watch with either an
(a) Aluminum case or
(b) Titanium case.
2. In setting price, assume Apple marks up total cost per unit by 30%. Compute the selling price per unit for an Apple watch with either an
(a) Aluminum case or
(b) Titanium case.
Transcribed Image Text:
Cost per Watch Cost per Watch Assembly process costs Direct materials, excluding case. Custom choices $ 85 Aluminum case.... $ 50 .... . .... Conversion..... 165 Titanium case. 200
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