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FCC Company needs to determine the price for a new product. The company desires a 25% markup on the total cost of the product. It expects to sell 5,000 units. Additional information is as follows (round your final answer to the nearest 2 decimal places number, i.e., $27.345 would be 27.35): Variable Costs per Unit Direct materials Direct labor Overhead General and administrative $5 6 4 8 Fixed Costs (total) Overhead General and administrative Using the total cost method, what price should FCC Company charge? $ 50,000 15,000

FCC Company needs to determine the price for a new product. The company desires a 25% markup on the total cost of the product. It expects to sell 5,000 units. Additional information is as follows (round your final answer to the nearest 2 decimal places number, i.e., $27.345 would be 27.35): Variable Costs per Unit Direct materials Direct labor Overhead General and administrative $5 6 4 8 Fixed Costs (total) Overhead General and administrative Using the total cost method, what price should FCC Company charge? $ 50,000 15,000

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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FCC Company needs to determine the price for a new product. The company desires a 25% markup on the total cost of the product. It expects to sell 5,000 units. Additional information is as follows (round your final answer to the nearest 2 decimal places number, i.e., $27.345 would be 27.35): Variable Costs per Unit Direct materials Direct labor Overhead General and administrative $5 6 4 8 Fixed Costs (total) Overhead General and administrative Using the total cost method, what price should FCC Company charge? $ 50,000 15,000
Transcribed Image Text:FCC Company needs to determine the price for a new product. The company desires a 25% markup on the total cost of the product. It expects to sell 5,000 units. Additional information is as follows (round your final answer to the nearest 2 decimal places number, i.e., $27.345 would be 27.35): Variable Costs per Unit Direct materials Direct labor Overhead General and administrative $5 6 4 8 Fixed Costs (total) Overhead General and administrative Using the total cost method, what price should FCC Company charge? $ 50,000 15,000
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