need help with the red checked questions
Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flot panel displays are estimated as follows: 5120 30 50 35 $235 Variable costs per unit: Fixed costs: Direct materials Factory overhead $250,000 Direct labor Selling and administrative expenses 150,000 Factory overhead Selling and administrative expenses Total variable cost per unit Crystal Displays Inc. is currently considering establishing saling price for flat panel dieplays. The president of Crystal Displaya has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets, Required: Note: Round all markup percentagen to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dottar. 1. Determine the amount of desired profit from the production and sale of fiat panel displays 225,000 2. Assuming that the product cont method is used, setermine the following: a. Product cost amount per unit 250 b. Markup percentage 44 c. Selling price per unit 360 3. (Appendix) Assuming that the total cost method is used determine the following: Total cost amount per unit 315 b. Markup percentage 14.29 M eBook Calculator 235 b. Markup percentage 14.29 96 c. Selling price per unit 360. 4. (Appendix) Assuming that the variable cost method is used, determine the following: a. Variable cost amount per unit b. Markup percentage 53.19 c. Selling price per unit 360 5. The cost-plus approach price computed above should be viewed as a general guideline for establishing long run normal prices; however, other considerations, os the price of competing products and general economic conditions of the marketplace could lead management to establish a different short-run prire 6. Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold during the current year. Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost method. On August, Crystal Displays Inc. received an offer from Maple Leat Visual Inc. for 300 units of flat panel displays at $225 each. Maple Leat Visual Inc. will market the units in Canada under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by Crystal Displays Inc. The additional business is not expected to affect the domestic sales of flat panel displays, and the additional units could be produced using existing factory, seling, and administrative capacity 4. Prepare a differential snalysis of the proposed sale to Maple Leaf Vituni Ince. If an amount is zero, unter 10" Differential Analysis Reject (Alt. 1) or Accept (Alt. 2) Order August Reject Accept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues 570 X 752 TIZ X Costs Variable manufacturing costs 376 X 523 X 147 X 194 Profit (0) X 229 X 35 X
