Question
Nile company invested $3,000,000 in assets to produce (A10) product with a capacity of 55000 units, while :normal sales 50000 units the cost of
Nile company invested $3,000,000 in assets to produce (A10) product with a capacity of 55000 units, while :normal sales 50000 units the cost of production is DM $25 per unit DL $15per unit V.OH $20 per unit Fixed OH is $450,000 for a full capacity :Answer following questions What is a minimum price should be set for a .1 special order of 5000 units What is a minimum price should be set for a .2 special order of 8000 units that needs additional fixed cost of $32,000 What is the normal price should be set if markup .3 is 10% of total variable cost What is the normal price should be set if markup .4 is 20% of total cost What is the normal price should be set if markup .5 is 10% return on investment Compute target cost if market price is $65 and .6 the company want to maintain 10% return on investment as a markup If selling price is determined as $80 compute the .7 markup % of variable cost
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