Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows:

Variable costs per unit:
2	Direct materials	$120.00
3	Direct labor	30.00
4	Factory overhead	50.00
5	Selling and administrative expenses	35.00
6	Total	$235.00
7	Fixed costs:
8	Factory overhead	$250,000.00
9	Selling and administrative expenses	150,000.00

Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% rate of return on invested assets.

2. Assuming that the product cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage, and (c) the selling price of flat panel displays.

Cost amount per unit
Markup percentage	%
Selling price

Points:

1 / 3

3. (Appendix) Assuming that the total cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays (rounded to nearest whole dollar).

Cost amount per unit
Markup percentage	%
Selling price

Points:

0 / 3

4. (Appendix) Assuming that the variable cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays (rounded to nearest whole dollar).

Cost amount per unit
Markup percentage	%
Selling price

please complete table:

Differential Analysis Score: 17/53 Iternative 1) or Accept August 3 Differential Effect Reject Order Accept Order on Income Alternative 1) (Alternative 2) (Alternative 2) 3 Revenues 4 Costs: 5 Variable manufacturing costs 6 Income (Loss), per unit 6 Income (Loss) per unit