Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 34,000 units follow. The company targets

image text in transcribed

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 34,000 units follow. The company targets a profit of $314,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative $ 84 54 39 29 Fixed Costs (total) Overhead Selling, general and administrative $ 684,000 618,000 1. Compute the total variable cost and the markup percentage. 2. Compute the dollar markup per unit on variable cost. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest whole number.) 1. Total variable costs 1. Markup percentage 2. Markup per unit 3. Selling price per unit %

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_2

Step: 3

blur-text-image_3

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

Governmental and Nonprofit Accounting

Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi

10th edition

132751267, 978-0132751261

More Books

Students also viewed these Accounting questions

Question

2017 57.07 2005 39.43 2018 72.33 2006 48.71 2019

Answered: 1 week ago