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Am trying to locate text book solutions for : Accounting Business Reporting for Decision Making 6th Edition by Authors (Birt, Chalmers, Malony, Brooks, Olivia) Please
Am trying to locate text book solutions for : Accounting Business Reporting for Decision Making 6th Edition by Authors (Birt, Chalmers, Malony, Brooks, Olivia)
Please assist.
Questions on Chapter 11 - 11.29
11.29 Product Pricing decisions and profitability
Screen Industries manufactures two products: Alpha and Beta. Both products are produced on the same assembly lines and packaged with 20units of product per package. The predicted sales are 320 000 packs of Alpha and 400 000 packs of Beta. The budgeted costs for the coming year are as follows:
| Variable Cost | Fixed Cost |
Materials | $320 000 | $640 000 |
Other | $480 000 | $1280 000 |
Each product uses 50 percent of the variable material costs. The other costs are allocated as follows: variable costs based on machine time (Alpha 160 000 hours and Beta 80 000 hours) and fixed costs allocated evenly to both products. The management of Screen Industries desires an annual profit of $160 000 per product.
Required:
- Calculate the total cost for each product.
- What price should be charged for each product?
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