Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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 Essentials

Authors: Frank C Giove

1st Edition

0738671509, 9780738671505

More Books

Students also viewed these Accounting questions

Question

13.1 Explain the strategic role of employee benefits.

Answered: 1 week ago