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qs 25-17 and 25-11 kull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow.
qs 25-17 and 25-11
kull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a 14.0% markup on total cost.
Variable Costs per Unit | |
Direct materials | $ 121 |
---|---|
Direct labor | 46 |
Overhead | 41 |
Selling, general and administrative | 9 |
Fixed Costs (total) | |
Overhead | $ 491,000 |
---|---|
Selling, general and administrative | 469,000 |
1. Compute the total cost per unit if 20,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit.
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a 14.0% markup on total cost. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative $ 121 46 41 9 Fixed Costs (total) Overhead Selling, general and administrative $ 491,000 469,000 1. Compute the total cost per unit if 20,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.) 1. Total cost per unit 2. Markup per unit 3. Selling price per unitStep by Step Solution
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