ABC, Inc. is a small company that produces a wide variety of computer devices. The variable and
Fantastic news! We've Found the answer you've been seeking!
Question:
ABC, Inc. is a small company that produces a wide variety of computer devices. The variable and fixed costs expected by ABC, Inc. for the next year are as follows:
Variable costs | Fixed costs | Total |
Manufacturing Costs | $414822 | $460913 |
Selling and Administrative Expenses | 107546 | 599187 |
Total | $522368 | $1060100 |
The information on the manufacturing cost per unit of product 100BC is as follows:
100BC Product Costs: | |
Direct material | $11.24 |
Direct labor | 5.03 |
Variable manufacturing indirect costs | 4.14 |
Fixed manufacturing indirect costs | 8.58 |
Total manufacturing cost | 29.57 |
Variable selling and administrative expenses | 5.62 |
Management has set a profit target for next year of $327,513 from the sale of the 100BC product.
REQUIRED:
Use the full variable cost markup to determine a suggested selling price for one unit of product 100BC. Total variable cost includes manufacturing costs and selling and administrative expenses.
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0077733773
7th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
Posted Date: