Exercise 23-11 (Algo) Pricing using total costs LO P6 Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 19.000 units follow The company targets a 10.0% markup on total cost variable costs per unit Direct materials Direct labor Overhead selling, general and administrative $118 43 38 9 Fixed Costs (total) Overhead $ 482,000 Selling, general and administrative 468,000 1. Compute the total cost per unit if 19,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.) 1. Total cost per unit S 258 2. Markup per unit 3. Selling price per unit Exercise 23-12 (Algo) Pricing using variable costs LO P6 Rios Company makes drones and uses the variable cost method in setting product price. 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 Direct labor Overhead Selling, general and administrative 86 56 41 31 Fixed Costs (total) Overhead $ 686,000 selling, general and administrative 622,000 1. Compute the total variable cost and the markup percentage. 2. Compute the dollar markup per unit on variable cost. 3. Compute the selling price per unit (For all requirements, round your final answers to the nearest whole number.) 1. Total variable costs 1. Markup percentage 2. Markup per unit 3. Selling price per unit $ 259 < Prev 8 of 8 Next Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of four years. It can be sold now for $57,000. Variable manufacturing costs are $50,000 per year for this old machine Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Variable manufacturing costs per year Machine A $ 117,000 18,000 Machine B $ 129,000 15,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) Machine A: Keep or Replace Analysis Keep Replace Income Increase (Decrease) from Replacing Revenues Sale of existing machine $ 0 $ 57,000 Costs Purchase of new machine $ 0 (117,000) Variable manufacturing costs. Income (loss)) $ 0 $ (60,000) S (60,000) Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of four years. It can be sold now for $57.000. Variable manufacturing costs are $50,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Variable manufacturing costs per year Machine A $ 117,000 18,000 Machine B $ 129,000 15,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Reb B Req C and D Req B Compute the income incr or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Machine B: Keep or Replace Analysis Keep Replace Income Increase (Decrease) from Replacing Revenues Sale of existing machine $ 0 $ 57,000 Costs: Purchase of new machine $ 0 (129,000) Variable manufacturing costs Income (loss) $ 0 $ (72,000) $ (72,000)