Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tesla uses the product cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing 20,000 units of Model S

image text in transcribed
Tesla uses the product cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing 20,000 units of Model S are as follows: Direct materials $ 45,000 Direct labor 190,000 Factory overhead 65.000 $ 300,000 Total product cost The selling and administrative expenses are $25,000. Tesla desires a profit equal to a 11% return on invested assets of $2,200,000. a a. Determine the amount of desired profit from the production and sale of Model S. 6. Determine the cost per unit for the production of 20,000 units of Model S. c. Determine the markup percentage for Model S. d. Determine the selling price of Model S. Round the markup percentage to one decimal place and other intermediate computations and final answer to two decimal places

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

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven Finkler, Judith Baker, David Ward

3rd Edition

0810235447, 9780763738136

More Books

Students also viewed these Accounting questions

Question

Whether training would be needed, and what methods would be used.

Answered: 1 week ago

Question

What should be the purpose of performance management and appraisal?

Answered: 1 week ago

Question

The issue of staff sensitivity to feedback

Answered: 1 week ago