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