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Please show all work/explanations, will provide positive feedback! Bill's Company is budgeting for the production of 40,000 units of a product that was recently modified.
Please show all work/explanations, will provide positive feedback!
Bill's Company is budgeting for the production of 40,000 units of a product that was recently modified. The company employs several engineers and product designers full time to improve existing products and create new ones. The costs associated with the newly modified product have been estimated as follows: Direct cost per unit $ 10 Variable overhead per unit $ 2 Variable selling cost per unit $ 1 Engineering and design costs $ 90,000 Factory rent and supplies $ 80,000 Selling, general, and administrative $100,000 The company sets prices using the absorption costing approach and employs a mark-up of 40% over the unit product costs. What will the price per unit be under this policy? a) $19.60 b) $24.15 c) $25.55 d) $27.65 e) $22.50
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