2. Metly report your j. 1,2,3 P12-5 Product pricing using the cost-plus approach concepts; differential analysis report for accepting additional business - Markup centage 164 Twilight Lumina Company recently began production of a new product, the halogen light which required an investment of $1,200,000 in assets. The cost of producing and sewing 20,000 halogen lights are estimated as follows: Fixed costs: Variable unit costs: Direct materials Direct labor Selling and admin. exp. Factory overhead Selling and admin. exp Total $50 Factory overhead $340,000 160,000 $30 10 Twilight Lumina Company is currently considering establishing a selling price for the halogen light. The president of Twilight Lumina Company has decided to use the cost plus approach to product pricing and has indicated that the halogen light must eam a 20% rate of return on invested assets. Instructions Determine the amount of desired profit from the production and sale of the halogen light 2. Assuming that the total cost concept is used determine the cost amount per unie (b) the markup percentage, and (c) the selling price of the halogen light. 3. Assuming that the product cost concept is used, determine the cost amount per unite the markup percentage (round to the nearest two decimal places), and (c) the selling price of the halogen light (round to the nearest cent). 4. Assuming that the variable cost concept is used, determine the cost amount per unit (b) the markup percentage, and the selling price of the halogen light. 5. Comment on any additional considerations that could influence establishing the selling price for the halogen light 6. Assume that 15,000 units of the halogen light have been produced and sold durin the current year. Analysis of the domestic market indicates that 2,000 additional unit of the halogen light are expected to be sold during the remainder of the year at th normal product price determined under the total cost concept. Twilight Lumina Com pany received an offer from Contech Inc. for 3.000 units of the halogen light at $ cach. Contech Inc. will market the units in Southeast Asia under its own brand nam and no selling and administrative expenses associated with the sale will be incurra by Twilight Lumina Company. The additional business is not expected to affect t domestic sales of the halogen light, and the additional units could be produced usi existing capacity a. Prepare a differential analysis report of the proposed sale to Contech Inc. b. Based on the differential analysis report in part (a), should the proposal be accepte 2. Metly report your j. 1,2,3 P12-5 Product pricing using the cost-plus approach concepts; differential analysis report for accepting additional business - Markup centage 164 Twilight Lumina Company recently began production of a new product, the halogen light which required an investment of $1,200,000 in assets. The cost of producing and sewing 20,000 halogen lights are estimated as follows: Fixed costs: Variable unit costs: Direct materials Direct labor Selling and admin. exp. Factory overhead Selling and admin. exp Total $50 Factory overhead $340,000 160,000 $30 10 Twilight Lumina Company is currently considering establishing a selling price for the halogen light. The president of Twilight Lumina Company has decided to use the cost plus approach to product pricing and has indicated that the halogen light must eam a 20% rate of return on invested assets. Instructions Determine the amount of desired profit from the production and sale of the halogen light 2. Assuming that the total cost concept is used determine the cost amount per unie (b) the markup percentage, and (c) the selling price of the halogen light. 3. Assuming that the product cost concept is used, determine the cost amount per unite the markup percentage (round to the nearest two decimal places), and (c) the selling price of the halogen light (round to the nearest cent). 4. Assuming that the variable cost concept is used, determine the cost amount per unit (b) the markup percentage, and the selling price of the halogen light. 5. Comment on any additional considerations that could influence establishing the selling price for the halogen light 6. Assume that 15,000 units of the halogen light have been produced and sold durin the current year. Analysis of the domestic market indicates that 2,000 additional unit of the halogen light are expected to be sold during the remainder of the year at th normal product price determined under the total cost concept. Twilight Lumina Com pany received an offer from Contech Inc. for 3.000 units of the halogen light at $ cach. Contech Inc. will market the units in Southeast Asia under its own brand nam and no selling and administrative expenses associated with the sale will be incurra by Twilight Lumina Company. The additional business is not expected to affect t domestic sales of the halogen light, and the additional units could be produced usi existing capacity a. Prepare a differential analysis report of the proposed sale to Contech Inc. b. Based on the differential analysis report in part (a), should the proposal be accepte