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Just need some quick help please I will rate! Many thanks and God bless!!! Terra Potteryworks is a price - setter that uses the cost
Just need some quick help please
I will rate!
Many thanks and God bless!!!
Terra Potteryworks is a price - setter that uses the cost - plus pricing approach for pricing its products. These products are unique, artistically designed architectural decorations. Terra produces and sells 6,200 units per year, which represent maximum capacity. Variable costs are $320.00 per unit. Total fixed costs are $900,000 per year. The CEO has a target of $60,000 in operating income, which he wants to achieve by year-end. Using the cost - plus pricing method, what sales price per unit should Terra use? (Round your answer to the nearest cent.) O A. $329.68 per unit OB. $154.84 per unit O C. $465.16 per unit OD. $474.84 per unit Foundations, Inc. produces and sells cosmetic products. Currently, the company is operating at 70% of its capacity. The sales price of its product is $30 per unit, and it incurs a full cost of $25 to produce each unit. Its yearly fixed manufacturing overhead amounts to $20,000. The company has received a one-time order for supplying 5,000 units at $26 per unit. This order can be executed within the excess production capacity and will not involve any additional fixed costs. To make this decision, the management of Foundations should use O A. absorption costing as the decision is short-term in nature O B. variable costing as the decision is short-term in nature OC. absorption costing as the decision is long-term in nature OD. variable costing as the decision is long-term in natureStep by Step Solution
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