mi E8.4 Use cost-plus pricing to determine selling priceKaspar Corporation makes a commercial-grade cooking griddle. The following informationis available for Kaspar Corporation's anticipated annual volume of 30,000 units.Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expensesPer UnitTotal17.008.0011.00$300,0004.00150,000Fixed selling and administrative expensesThe company uses a 40% markup percentage on total cost.Instructionsa. Compute the total unit cost.b. Compute the target selling price.NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference acell), into the yellow shaded input cells.a. Compute the total unit cost.Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expensesFixed selling and administrative expensesTotal cost per unitb. Compute the target selling price.Total cost per unitMarkupTarget selling pricePer Unit

a. Compute the total unit costDirect materials= unit cost= given at $17Direct labor= unit cost=…

Answered: E8.4 Use cost-plus pricing to determine…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 4MCQ

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Product cost method of product costing Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Smart Stream desires a profit equal to a 30% return on invested assets of 1,200,000. A. Determine the amount of desired profit from the production and sale of 10,000 cell phones. B. Determine the product cost per unit for the production of 10,000 cell phones. C. Determine the product cost markup percentage for cell phones. D. Determine the selling price of cell phones.
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false McCallen Company expects to produce and sell 500 units in the next month. The data on costs are as follows: Per-unit costs: Selling price $8.00 Variable manufacturing costs 2.75 Variable selling costs 0.25 Total costs: Fixed manufacturing costs $1,000 Fixed selling costs 125 Required: A. What is the variable cost per unit? B. What is the contribution margin per unit? C. What is the variable cost ratio? Round your answer to one decimal place. % D. What is the contribution margin ratio? Round your answer to one decimal place.
Communication codes of our products are TEL1 and TEL2. Their sale prices are respectively 200$ and 500$. The yearly capacity of the business is 60.000 units TEL1 and 30.000 units TEL2. Fixed costs are 11.934.000$ and are uploaded to goods according to their revenues. Variable costs are as follows: TEL1 TEL2 Direct Material30 $140 $Direct Labor20 $110 $Variable MO.10 $ 75 Sa) Compute the sale mix breakeven point and the sale quantity of each good at the breakeven point.b) Compute the the profit at the budgeted sale quantity.c) To get 9.945.000$ profit, compute the sale prices of each good.
SBD Phone Company sells its waterproof phone case for $122 per unit. Fixed costs total $262,000, and variable costs are $52 per unit. Compute the units of product that must be sold to earn pretax income of $228,000. Units to be sold to achieve targeted income Choose Numerator: Choose Denominator: Units to Achieve Target Units to achieve target II
Relevant-cost approach to short-run pricing decisionsAlexon SL is an electronics business with eight product lines. Profit data for one of the products (XT-107) for themonth just ended (June 2018) are as follows:Sales, 200 000 units at average price of €100Variable costsDirect materials at €35 per unitDirect manufacturing labor at €10 per unit€7 000 0002 000 000€20 000 000Variable manufacturing overhead at €5 per unit 1 000 000Sales commissions at 15% of sales 3 000 000Other variable costs at €5 per unitTotal variable costs 1 000 000 14 000 000Contribution margin 6 000 000Fixed costsOperating profit5 000 000€1 000 000Xuclà Mecàniques Fluvià SA, an instruments company, has a problem with its preferred supplierof XT-107 component products. This supplier has had a three-week strike and will not be able tosupply Xuclà 3000 units next month. Xuclà approaches the sales representative of Alexon SL,Angela Zamora, about providing 3000 units of XT-107 at a price of €80 per unit. Zamorainforms…
Required information [The following information applies to the questions displayed below.] Barnes Company reports the following for its product for its first year of operations. $30 per unit $20 per unit $ 11 per unit 60,000 per year $3 per unit $ 22,000 per year $ Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses The company sells its product for $150 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 2,400 units and (b) produces 3,000 units and sells 2,400 units. X Answer is complete but not entirely correct. Contribution margin using variable costing Sales Variable expenses Direct materials Direct labor Variable overhead Contribution margin (a) 2,400 Units Produced and 2,400 Units Sold ✔ $ X X X 360,000 $ 72,000 48,000 X 26,400 X 213,600 $ (b) 3,000 Units Produced and 2,400 Units Sold 360,000✔ 90,000 X 60,000 X 33,000 X 147,000
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ook int rint rences W ! Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 1. Amount of sales 2. Margin of safety $ 1,167,000 900 1. Assume Hudson has a target income of $165,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) % Help DD Save & Exit Submit Check my work F10
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