Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lafleur Corporation needs to set a target price for its newly designed product, M14-M16. The following data relate to it: Per Unit Total Direct materials

Lafleur Corporation needs to set a target price for its newly designed product, M14-M16. The following data relate to it:

Per Unit Total
Direct materials $12
Direct labour 17
Variable manufacturing overhead 10
Fixed manufacturing overhead $2,970,000
Variable selling and administrative expenses 4
Fixed selling and administrative expenses 2,376,000

These costs are based on a budgeted volume of 297,000 units produced and sold each year. Lafleur uses cost-plus pricing to set its target selling price. The markup on the total unit cost is 40%.

Calculate the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14-M16.

Total variable cost per unit $
Total fixed costs per unit $
Total cost per unit $

eTextbook and Media

Question Part Score

--/3

Calculate the desired markup per unit for M14-M16. (Round answer to 2 decimal places, e.g. 15.25.)

Markup per unit $

eTextbook and Media

Question Part Score

--/2

Calculate the target selling price for M14-M16. (Round answer to 2 decimal places, e.g. 15.25.)

Target selling price $

eTextbook and Media

Question Part Score

--/2

Assuming that 237,600 M14-M16s are produced during the year, calculate the variable cost per unit, fixed cost per unit, and total cost per unit. (Round answers to 2 decimal places, e.g. 15.25.)

Total variable cost per unit $
Total fixed costs per unit $
Total cost per unit $

eTextbook and Media

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

ISE Computer Accounting With Quickbooks Online

Authors: Donna Kay

2nd Edition

1260590933, 9781260590937

More Books

Students also viewed these Accounting questions

Question

=+What are the outcomes?

Answered: 1 week ago

Question

=+ What does the usage of these products abroad look like?

Answered: 1 week ago