12.19 The Emmon Company's normal sales volume is 500,000 units. The unit cost to mako sell the product is as follows: Direct materials P50.00 Direct labor 25.00 10.00 Variable factory overhead Fixed factory overhead Variable selling and administrative expenses Fixed selling and administrative expenses 15.00 8.00 7.00 Beginning 2008, replacement cost of direct material is P55 per unit, labor contract provides and increase of 20% and variable selling costs increase by 10%. Sales discount averages 3% on gross sales. Required: Compute the unit selling price to be set up if management desires a profit of 25% based on full costs.
12.19 The Emmon Company's normal sales volume is 500,000 units. The unit cost to mako sell the product is as follows: Direct materials P50.00 Direct labor 25.00 10.00 Variable factory overhead Fixed factory overhead Variable selling and administrative expenses Fixed selling and administrative expenses 15.00 8.00 7.00 Beginning 2008, replacement cost of direct material is P55 per unit, labor contract provides and increase of 20% and variable selling costs increase by 10%. Sales discount averages 3% on gross sales. Required: Compute the unit selling price to be set up if management desires a profit of 25% based on full costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Required: Compute the selling price per unit that will meet the expected results based on the
The company is projecting a selling price that would give them a 25% return on
investment.
on
above data. Show proof of answer.
12.19
The Emmon Company's normal sales volume is 500,000 units. The unit cost to make a
sell the product is as follows:
008
P50.00
Direct materials
rlon 25.00 s v
10.00
Direct labor
Variable factory overhead
Fixed factory overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
15.00
8.00
7.00
Beginning 2008, replacement cost of direct material is P55 per unit, labor contract provides and
increase of 20% and variable selling costs increase by 10%. Sales discount averages 3% on gross
sales.
Required: Compute the unit selling price to be set up if management desires a profit of 25%
based on full costs.
in
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