Answered step by step
Verified Expert Solution
Question
1 Approved Answer
KISS Electronics is considering the production of a new Blu-ray player. The managerial accountant has provided the following information: Number of units to be produced
KISS Electronics is considering the production of a new Blu-ray player. The managerial accountant has provided the following information: Number of units to be produced each year Unit variable manufacturing costs Fixed manufacturing costs Required ROI Estimated investment required by the company Unit variable selling and administrative costs Fixed selling and administrative costs 10,000 $78 $227,000 15% $485,000 $6 $169,750 Required: answer the following questions by providing only numeric values without any formatting to the boxes given below. Round all the numbers to the 2nd decimal places. a. Assume KISS uses the absorption approach to cost-plus pricing and the unit sales is 10,000 units, calculate the unit cost, the markup percentage, and the unit sales price by filling in the following boxes: Unit variable cost Unit fixed cost Unit cost Markup percentage Unit sales price b. Assume KISS uses the absorption approach to cost-plus pricing with a markup percentage of 25%, and the unit sales is 7,500 units, calculate the unit cost and the unit sales price by filling in the following boxes: b. Assume KISS uses the absorption approach to cost-plus pricing with a markup percentage of 25%, and the unit sales is 7,500 units, calculate the unit cost and the unit sales price by filling in the following boxes: Unit variable cost Unit fixed cost Unit cost Markup Unit sales price c. Assume KISS uses the total variable cost approach to cost-plus pricing and the unit sales is 7,500 units, calculate the unit cost, the markup percentage, and the unit sales price by filling in the following boxes: Unit cost Markup percentage Unit sales price
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started