Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the mark-up ratio? (round your answer to 2 decimal places) What is the target unit sales price? Assuming the expected sales 30,000 units

What is the mark-up ratio? (round your answer to 2 decimal places)

What is the target unit sales price?

Assuming the expected sales 30,000 units instead of 50,000 units, what is the mark-up ratio? (round your answer to 2 decimal places)

image text in transcribed
Focus Corporation is considering the production of a new product that needs P 2.5 million investment. The company wants a 12% R01 on all products and uses the contribution margin approach to pricing. The costs shown below are traceable to the new product. Variable factory costs per unit P 30 Fixed factory overhead 600,000 Variable expenses per unit 6 Fixed expenses 150,000 The company expects to sell 50,000 units a year

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

Step: 3

blur-text-image

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

Accounting Multicolumn Journal

Authors: Claudia Gilbertson

11th Edition

1337565423, 9781337565424

More Books

Students also viewed these Accounting questions

Question

8. What are the costs of collecting the information?

Answered: 1 week ago