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Campbell Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 3,300 chairs in January. Materials and labor costs for January were $16,400 and $25,400, respectively. Campbell produced 1,200 chairs in February. Material and labor costs for February were $9,800 and $12,500, respectively. The company paid the $642,600 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Campbell desires to sell its chairs for cost plus 10 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January February

Campbell Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 3,300 chairs in January. Materials and labor costs for January were $16,400 and $25,400, respectively. Campbell produced 1,200 chairs in February. Material and labor costs for February were $9,800 and $12,500, respectively. The company paid the $642,600 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Campbell desires to sell its chairs for cost plus 10 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January February

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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7 Campbell Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 3,300 chairs in January. Materials and labor costs for January were $16,400 and $25,400, respectively. Campbell produced 1,200 chairs in February. Material and labor costs for February were $9,800 and $12,500, respectively. The company paid the $642,600 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required 3 Assuming that Campbell desires to sell its chairs for cost plus 10 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January February
Transcribed Image Text:7 Campbell Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 3,300 chairs in January. Materials and labor costs for January were $16,400 and $25,400, respectively. Campbell produced 1,200 chairs in February. Material and labor costs for February were $9,800 and $12,500, respectively. The company paid the $642,600 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required 3 Assuming that Campbell desires to sell its chairs for cost plus 10 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January February
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