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Current Attempt in Progress Cullumber Corporation needs to set a target price for its newly designed product EverRun. The following data relate to this new
Current Attempt in Progress Cullumber Corporation needs to set a target price for its newly designed product EverRun. The following data relate to this new product: Per Unit Total Direct materials $22 Direct labour 44 Variable manufacturing overhead 10 Fixed manufacturing overhead $1,764,000 Variable selling and administrative expenses 7 Fixed selling and administrative expenses 1,146,600 The costs above are based on a budgeted volume of 88,200 units produced and sold each year. Cullumber uses cost-plus pricing to set its target selling price. Because some managers prefer the absorption-cost approach and others prefer the variable-cost approach, the accounting department provides information under both approaches, using a markup of 50% on the manufacturing cost per unit and a markup of 75% on the variable cost. (a) Calculate the target price for one unit of EverRun using the absorption-cost approach. (Round answer to 2 decimal places, e.g. 15.25.) Target selling price $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit Answer Using multiple attempts will impact your score. 10% score reduction after attempt 1
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