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Technology Inc. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is
Technology Inc. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows: Direct material Direct labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Total manufacturing costs $10 7 S35 The following is the variable selling and administrative costs for the flash drive $6 Management has set a 2017 target profit on the flash drive of. Required: 1. Determine the markup percentage on vaiable costs required to earn the desired prorit $250,000 2. Use the variable cost markup to determine a suggested selling price for a flash drive. You are determining selling price per unit) 3 For the flash drive, break the markup on variable costs into separate parts for fixed costs and profit 4. Explain what the minimum unit selling price a company would use in special order decision, if the company had excess capacity. 5. In the long run, what would be the lowest unit selling price the company would sell for? Explain vour
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