Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Terra Potteryworks is a price-setter that uses the cost-plus pricing approach for pricing its products. These products are unique, artlstically designed architectural decorations. Tema produces

image text in transcribed
Terra Potteryworks is a price-setter that uses the cost-plus pricing approach for pricing its products. These products are unique, artlstically designed architectural decorations. Tema produces and selif, 6.000 units per year, which represent maximum capacity. Variable costs are $320. per unit. Total fixed costs are $900.000 per year. The CEO has a target of $60.000 in operating income, which he wants to achieve by year-end. Using the cost-plus pricing method, what sales price per unit should Terra use? (Round your answer to the nearest eent.). \$160.00 per unit: 5470.00 per unit $330.00 per unit $480.00 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

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Accounting questions

Question

Know the components of a position description

Answered: 1 week ago

Question

Explain the value of a true open-door policy

Answered: 1 week ago