Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please see pictures P9.51B (LO 2) Wamser Corporation needs to set a target price for its newly designed product, E2D2. The following data relate to

please see pictures

image text in transcribedimage text in transcribed
P9.51B (LO 2) Wamser Corporation needs to set a target price for its newly designed product, E2D2. The following data relate to it: Per Unit Total Direct materials $15 Direct labour 25 Variable manufacturing overhead 14 Fixed manufacturing overhead $4,000,000 Variable selling and administrative expenses 12 Fixed selling and administrative expenses 2,000,000 These costs are based on a budgeted volume of 1 million units produced and sold each year. Wamser uses cost-plus pricing to set its target selling price. The markup on the total unit cost is 25%. Instrucons a. Calculate the total variable cost per unit, total xed cost per unit, and total cost per unit for E2D2. Variahle {met her unit 2 $66 These costs are based on a budgeted volume of 1 million units produced and sold each year. Wamser uses cost-plus pricing to set its target selling price. The markup on the total unit cost is 25%. Instructions a. Calculate the total variable cost per unit, total xed cost per unit, and total cost per unit for E2-D2. Variable cost per unit = $66 b. Calculate the desired R01 per unit for E2D2. c. Calculate the target selling price for E2D2. (1. Calculate the variable cost per unit, xed cost per unit, and total cost per unit, assuming that 800,000 E2-D2s are produced during the year. (Round to two decimal places.)

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

Financial Accounting Reporting, Analysis And Decision Making

Authors: Shirley Carlon

6th Edition

0730363279, 9780730363279

More Books

Students also viewed these Accounting questions

Question

Define paraphrasing and reflecting.

Answered: 1 week ago