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Exercise 23-15 Product pricing using variable costs LO P1 Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs
Exercise 23-15 Product pricing using variable costs LO P1
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 26,000 units follow. The company targets a profit of $306,000 on this product.
Variable Costs per Unit | Fixed Costs | ||||||
Direct materials | $ | 76 | Overhead | $ | 676,000 | ||
Direct labor | 46 | Selling | 311,000 | ||||
Overhead | 31 | Administrative | 291,000 | ||||
Selling | 21 | ||||||
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 products selling price using the variable cost method.
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