Question
Alexon Limited is considering producing a new line of high quality skis. The company will incur $68 in variable product costs for each ski produced.
Alexon Limited is considering producing a new line of high quality skis. The company will incur $68 in variable product costs for each ski produced. Fixed manufacturing overhead costs amount to $7,000.
Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places.
a) Assume that the company has a policy to set product prices equal to the variable cost plus 84%. Determine how much the company would sell each ski for.
Selling Price: $Answer
b) Assume that the company has a pricing policy that requires their products to be sold at full cost plus 63%. For the upcoming year, it believes it can produce and sell a total of 7,000 skis. Determine how much the company would sell each ski for.
Full Cost per Unit: $Answer
Selling Price: $Answer
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