Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mystique Fashion, Inc. manufactures two products, dresses and skirts, both on the same assembly line. The predicted sales are 10,000 dresses and 12,500 skirts.

Mystique Fashion, Inc. manufactures two products, dresses and skirts, both on the same assembly line. The predicted sales are 10,000 dresses and 12,500 skirts. The predicted costs for the year are as follows: Variable Fixed Materials $200,000 $250,000 $500,000 Other $800,000 Each product uses 50 percent of the materials costs. Based on manufacturing time, 60 percent of the other costs are assigned to the dresses, and 40 percent of the other costs are assigned to skirts. The management of Mystique Fashion desires an annual profit of $100,000. Answer the following questions by filling in the blanks. Do not include any symbols besides decimals in your answers (do not input commas). a. What price should Mystique Fashion charge for each product if management believes the dresses should sell for 50 percent more (in terms of price) than the skirts? 1. Dresses = $ 2. Skirts = $ b. What is the total profit per product? 1. Dresses = $ 2. Skirts = $

Step by Step Solution

3.52 Rating (162 Votes )

There are 3 Steps involved in it

Step: 1

a Total Revenue that should be earned to earn a profit of 100000 Total Cost Variable Fixed Desired R... 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_2

Step: 3

blur-text-image_3

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

Cost Accounting A Managerial Emphasis

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

6th Canadian edition

978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883

More Books

Students also viewed these Accounting questions

Question

Repeat the previous problem for a 40-strike 180-day put.

Answered: 1 week ago

Question

Verify the transportation solution shown in Example 3.

Answered: 1 week ago