Question
(Only need help on the 3rd part, please ) Techcom is designing a new smartphone. Each unit of this new phone will require $237 of
(Only need help on the 3rd part, please )
Techcom is designing a new smartphone. Each unit of this new phone will require $237 of direct materials; $17 of direct labor; $31 of variable overhead; $25 of variable selling, general, and administrative costs; $38 of fixed overhead costs; and $17 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $870 per unit. Compute the target cost per unit if the companys target profit is 70% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs.
Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this new phone will require $237 of direct materials; $17 of direct labor; $31 of variable overhead; $25 of variable selling, general, and administrative costs; $38 of fixed overhead costs; and $17 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $870 per unit. Compute the target cost per unit if the company's target profit is 70% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Complete this question by entering your answers in the tabs below. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this new phone will require $237 of direct materials; $17 of direct labor; $31 of variable overhead; $25 of variable selling, general, and administrative costs; $38 of fixed overhead costs; and $17 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $870 per unit. Compute the target cost per unit if the company's target profit is 70% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Complete this question by entering your answers in the tabs below. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costsStep by Step Solution
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