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e company targets a 12.0% markup on total cost. Variable Costs per Unit Direct materials $ 110 Direct labor 35 Overhead 30 Selling, general and administrative 8 Fixed Costs (total) Overhead $ 480,000 Selling, general and administrative 450,000 Compute the total cost per unit if 15.000 units are produced.

e company targets a 12.0% markup on total cost. Variable Costs per Unit Direct materials $ 110 Direct labor 35 Overhead 30 Selling, general and administrative 8 Fixed Costs (total) Overhead $ 480,000 Selling, general and administrative 450,000 Compute the total cost per unit if 15.000 units are produced.

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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Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 15,000 units follow. The company targets a 12.0% markup on total cost. Variable Costs per Unit $ 110 35 Direct materials Direct labor Overhead 30 Selling, general and administrative 8 Fixed Costs (total) $ 480,000 450,000 Overhead Selling, general and administrative 1. Compute the total cost per unit if 15,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.) 1. Total cost per unit 2. Markup per unit 3. Selling price per unit
Transcribed Image Text:Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 15,000 units follow. The company targets a 12.0% markup on total cost. Variable Costs per Unit $ 110 35 Direct materials Direct labor Overhead 30 Selling, general and administrative 8 Fixed Costs (total) $ 480,000 450,000 Overhead Selling, general and administrative 1. Compute the total cost per unit if 15,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.) 1. Total cost per unit 2. Markup per unit 3. Selling price per unit
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