Green Gables Company...

Green Gables Company makes a product that has the following costs: Per unit Per year Direct materials 517. 30 Direct labour 12.90 Variable manufacturing 4.20 overhead Fixed manufacturing overhead $916,800 Variable SG&A expenses 2.00 Fixed SG&A expenses 907,200 The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 48,000 units per year. The company has invested $360,000 in this product and expects a return on investment of 15%. Required: 1. Compute the markup on absorption cost. 2. Compute the target selling price of the product using the absorption costing approach. Cows Creamery Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Gooey Mooey Wowie Cowie Total Allocated Joint processing costs $22,000 $19,600 $41,600 Sales value at split-off point $32,000 $28,000 $60,000 Costs of further processing $11,600 $25, 300 $36,900 Sales value after further $40,800 $54,200 $95,000 processmg Required: 1. What is the net monetary advantage (disadvantage) of processing Gooey Mgoey beyond the split-off point? 2. What is the net monetary advantage (disadvantage) of processing Wome- 91ij beyond the split-off point? 3. What is the minimum amount the company should accept for Gooey ngey if it is to be sold at the split-off point? 4. What is the minimum amount the company should accept for WQye geyyje if it is to be sold at the split-off point