Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 23,000 units follow. The company targets
Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 23,000 units follow. The company targets a profit of $303,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative $ 73 43 28 18 Fixed Costs (total) Overhead Selling, general and administrative $ 673,000 596,000 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 42% 3. Selling price per unit 230
Step 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