Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P12-5 Product pricing using the cost-plus approach concepts; differential analysis report for accepting additional business Obj 1,2 Twilight Lumina Company recently began production of a

image text in transcribed
image text in transcribed
P12-5 Product pricing using the cost-plus approach concepts; differential analysis report for accepting additional business Obj 1,2 Twilight Lumina Company recently began production of a new product, the halogen light which required the investment of $1,200,000 in assets. The costs producing and selling 20,000 halogen lights are estimated as follows: V 2. b. Markup percentage, 16% Variable costs: Fixed costs Direct materials $30 per unit Factory overhead $340,000 Direct labor 10 Selling and admin. exp 160,000 Factory overhead Selling and admin. exp $50 per unit Total Twilight Lumina Company is currently considering establishing a selling price for the halogen light. The president of Twilight Lumina Company has decided to use the cost-plu that the halogen light must earn a 20% rate of approach to product pricing and has indicated return on invested assets Instructions light. Determine the amount of desired profit from the production and sale of the halogen unit, 2. Assuming that the total cost concept is used, determine (a) the cost amount per the markup percentage, and (c the selling price of the halogen light per unit, 3. Assuming that the product cost concept is used, determine (a) cost amount selling (b) the markup percentage (round to the nearest two decimal places), and (c) the price of the halogen light (round to the nearest cent) (a) the cost amount per unit, Assuming that the variable cost concept is used, determine halogen selling (b) the markup percentage, and (c) the selling price of the establishing the s Comment on any additional considerations that could influence sold during the current price for the halogen halogen light have been and the price Assume that 15,000 units of indicates that 2,000 units of Analysis of domestic market year at the normal product from light are expected to be sold during the remainder of the ed an offer under the total cost concept. Lumina each. will the units Southeast Asia of iight an Lumina company. The under its own name, Twilight expenses associated with the sale will be incurred by

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

Integrated Audit Practice Case

Authors: David S. Kerr, Randal J. Elder, Alvin A. Arena

6th Edition

ISBN: 0912503564, 9780912503561

More Books

Students also viewed these Accounting questions