Question
Please see questions attached. Thank you! If possible, please complete questions 5-7 also? Part 5:What else should be considered when setting the product's selling price?
Please see questions attached. Thank you!
If possible, please complete questions 5-7 also?
Part 5:What else should be considered when setting the product's selling price?
Part 6:Which of the three costing concepts would be most appropriate in each of the following situations?
- External reporting for GAAP
- Normal (long-run) pricing
- Evaluating special orders
Part 7:Kann Corporation received a special order for 500 robots at $50 each from a foreign customer.Acceptance of the order would increase variable selling costs by $1.70 per unit because of shipping costs, but would not increase fixed costs or interfere with any current orders.Prepare a differential analysis to determine whether the special order should be accepted or not.
GIVEN: Kann Corporation produces industrial robots for high-precision manufacturing. The following information is available: Per Unit Direct materials $25.00 Direct labor $10.00 Variable manufacturing overhead $6.00 Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs Total $36,000 $4.00 $15,000 The company has a desired ROI of 20%. It has invested assets of $420,000. It anticipates making and selling 3,000 units per year. REQUIRED: Part 1: Using the total (full) cost concept, determine the (a) unit cost amount; (b) markup percentage; and (c) unit target selling price. Part 2: Using the product (absorption) cost concept, determine the (a) unit cost amount; and (b) markup percentage. Part 3: Using the variable cost concept, determine the (a) unit cost amount; and (b) markup percentage. Part 4: What is the target unit selling price under the three cost assumptionsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started