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Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $120 30 50 35 $235 a. Product cost amount per unit b. Markup percentage c. Selling price per unit Fixed costs: Factory overhead Selling and administrative expenses Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets. Required: Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar. 1. Determine the amount of desired profit from the production and sale of flat panel displays. $225,000 ✓ 2. Assuming that the product cost method is used, determine the following: a. Total cost amount per unit b. Markup percentage 3. (Appendix) Assuming that the total cost method is used, determine the following: 600 000 000 $250,000 150,000 c. Selling price per unit 4. (Appendix) Assuming that the variable cost method is used, determine the following: a. Variable cost amount per unit b. Markup percentage Selling price per unit

Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $120 30 50 35 $235 a. Product cost amount per unit b. Markup percentage c. Selling price per unit Fixed costs: Factory overhead Selling and administrative expenses Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets. Required: Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar. 1. Determine the amount of desired profit from the production and sale of flat panel displays. $225,000 ✓ 2. Assuming that the product cost method is used, determine the following: a. Total cost amount per unit b. Markup percentage 3. (Appendix) Assuming that the total cost method is used, determine the following: 600 000 000 $250,000 150,000 c. Selling price per unit 4. (Appendix) Assuming that the variable cost method is used, determine the following: a. Variable cost amount per unit b. Markup percentage Selling price per unit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chapter 11 Homework (Applicati x ← → C CengageNOWv2 | Online teachin X + v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false M Gmail ► YouTube > Chapter 11 Homework (Application) Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Maps Dashboard Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Check My Work eBook Assignment Score: 64.56% $120 30 50 35 $235 Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets. Required: Fixed costs: Factory overhead Selling and administrative expenses Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar. 1. Determine the amount of desired profit from the production and sale of flat panel displays. 225,000 ✓ 2. Assuming that the product cost method is used, determine the following: a. Product cost amount per unit b. Markup percentage c. Selling price per unit 3. (Appendix) Assuming that the total cost method is used, determine the following: a. Total cost amount per unit b. Markup percentage c. Selling price per unit 4. (Appendix) Assuming that the variable cost method is used, determine the following: a. Variable cost amount per unit b. Markup percentage c. Selling price per unit $ X % $250,000 150,000 % % The cost plus approach prica computad shave should ha viowed no a nonoral quidaling for establishing long run normal pricos: however other considerations, such sel All work saved. could load management to establish a different chart run prica. Save and Exit Previous Next X Update: Submit Assignment for Grading
Transcribed Image Text:Chapter 11 Homework (Applicati x ← → C CengageNOWv2 | Online teachin X + v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false M Gmail ► YouTube > Chapter 11 Homework (Application) Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Maps Dashboard Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Check My Work eBook Assignment Score: 64.56% $120 30 50 35 $235 Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets. Required: Fixed costs: Factory overhead Selling and administrative expenses Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar. 1. Determine the amount of desired profit from the production and sale of flat panel displays. 225,000 ✓ 2. Assuming that the product cost method is used, determine the following: a. Product cost amount per unit b. Markup percentage c. Selling price per unit 3. (Appendix) Assuming that the total cost method is used, determine the following: a. Total cost amount per unit b. Markup percentage c. Selling price per unit 4. (Appendix) Assuming that the variable cost method is used, determine the following: a. Variable cost amount per unit b. Markup percentage c. Selling price per unit $ X % $250,000 150,000 % % The cost plus approach prica computad shave should ha viowed no a nonoral quidaling for establishing long run normal pricos: however other considerations, such sel All work saved. could load management to establish a different chart run prica. Save and Exit Previous Next X Update: Submit Assignment for Grading
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