Cost data relating to the single product produced by the firm are given as: Direct materials→₱6.00; Direct labor→₱4.00; Variable manufacturing overhead→₱2.00; Fixed manufacturing overhead→₱160,000; Variable selling, general and administrative expenses→₱2.00; Fixed selling, general and administrative expenses→₱120,000. The firm uses the absorption costing approach described in the text and has a desired markup of 75%. If the company can produce and sell 20,000 units each period, the selling price per unit would be: a. ₱28.00 b. ₱35.00 c. ₱24.50 d. ₱36.00
Cost data relating to the single product produced by the firm are given as: Direct materials→₱6.00; Direct labor→₱4.00; Variable manufacturing overhead→₱2.00; Fixed manufacturing overhead→₱160,000; Variable selling, general and administrative expenses→₱2.00; Fixed selling, general and administrative expenses→₱120,000. The firm uses the absorption costing approach described in the text and has a desired markup of 75%. If the company can produce and sell 20,000 units each period, the selling price per unit would be: a. ₱28.00 b. ₱35.00 c. ₱24.50 d. ₱36.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cost data relating to the single product produced by the firm are given as: Direct materials→₱6.00; Direct labor→₱4.00; Variable manufacturing overhead →₱2.00; Fixed manufacturing overhead→₱160,000; Variable selling, general and administrative expenses→₱2.00; Fixed selling, general and administrative expenses→₱120,000. The firm uses the absorption costing approach described in the text and has a desired markup of 75%. If the company can produce and sell 20,000 units each period, the selling price per unit would be:
a. ₱28.00
b. ₱35.00
c. ₱24.50
d. ₱36.00
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