Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just need some quick help please I will rate! Many thanks and God bless!!! Terra Potteryworks is a price - setter that uses the cost

image text in transcribedimage text in transcribedJust 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 nature

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

The Essential Controller An Introduction To What Every Financial Manager Must Know

Authors: Steven M. Bragg

2nd Edition

1118169972, 9781118169971

More Books

Students also viewed these Accounting questions

Question

3. Why is the cash in the bank different from the profit figure?

Answered: 1 week ago