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See 17-2 and solve Problem 17-2. ut liil livellory balances as of September 30. Burtis Company produces a number of products. In 20x2 the selling
See 17-2 and solve
Problem 17-2. ut liil livellory balances as of September 30. Burtis Company produces a number of products. In 20x2 the selling price of product A, whose sales are normally 10,000 units per year, was calculated as follows: Unit Costs Direct material cost $ 4.00 Direct labor cost 7.00 Overhead cost 4.80 Selling and administrative cost 3.50 Full cost 19.30 Profit (10% of full cost) 1.93 Selling price $21.23 In 20x3 the company estimates that direct material cost and direct labor cost will in- crease by 12 percent. It also estimates that overhead cost will increase by a total of $6,000 and that selling and administrative cost and sales volume will remain unchanged. Required: What is the normal selling price for product A in 20x3 Step by Step Solution
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