Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 10-12 Product pricing using variable costs LO P6 Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs

image text in transcribed
Exercise 10-12 Product pricing using variable costs LO P6 Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 36,000 units follow. The company targets a profit of $316,000 on this product. Variable Costs per Unit Direct materials $ 86 Direct labor 56 Overhead 41 Selling 31 Fixed Costs (in total) Overhead $686,000 Selling 321,000 Administrative 301,090 1. Compute the variable cost per unit 2. Compute the markup percentage on variable cost (Round percentage answer to 2 decimal places.) 3. Compute the product's selling price using the variable cost method. (Round your intermediate percentage calculations and final answer to 2 decimal places.) 1 Variable cost per unit 2. Markup percentage 3 Selling price %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art And Science Of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser-Hogeterp

11th Edition

0132088061, 978-0132088060

More Books

Students also viewed these Accounting questions

Question

What would you do if the bullies and victim were girls?

Answered: 1 week ago