Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A. Product Costing & Pricing Below is the forecasted monthly demand for the first three months: Menu 1. Sesame Bun Burger (SBB) 2. Soy Burger

image text in transcribed

A. Product Costing & Pricing Below is the forecasted monthly demand for the first three months: Menu 1. Sesame Bun Burger (SBB) 2. Soy Burger (SB) Total units per month Forecasted Sales Units Month #1 Month #2 Month #3 1050 1176 1330 450 504 570 1500 1680 1900 Required: 1. Calculate the full absorption cost of each of the product. Monthly fixed overhead will be allocated to each product based on estimated units sold (you can use monthly cost and demand data to estimate unit costs). II. Determine the price of each product based on 50% cost mark-up. III. Prepare pro forma contribution margin income statement for each product for the first 3 months A. Product Costing & Pricing Below is the forecasted monthly demand for the first three months: Menu 1. Sesame Bun Burger (SBB) 2. Soy Burger (SB) Total units per month Forecasted Sales Units Month #1 Month #2 Month #3 1050 1176 1330 450 504 570 1500 1680 1900 Required: 1. Calculate the full absorption cost of each of the product. Monthly fixed overhead will be allocated to each product based on estimated units sold (you can use monthly cost and demand data to estimate unit costs). II. Determine the price of each product based on 50% cost mark-up. III. Prepare pro forma contribution margin income statement for each product for the first 3 months

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Accounting Volume 2 Managerial Accounting

Authors: OpenStax

1st Edition

0357364805, 9780357364802

More Books

Students also viewed these Accounting questions

Question

=+What are the factors and levels?

Answered: 1 week ago