### Flint Corporation's Manufacturing Cost AnalysisFlint Corporation manufactures a commercial-grade cooking griddle. Below is a detailed cost breakdown for the anticipated annual volume of 26,500 units:#### Cost Breakdown| Category | Per Unit | Total ||----------------------------------------|----------|-------------|| **Direct materials** | $14 | - || **Direct labor** | $6 | - || **Variable manufacturing overhead** | $10 | - || **Fixed manufacturing overhead** | - | $291,500 || **Variable selling and administrative expenses** | $8 | - || **Fixed selling and administrative expenses** | - | $159,000 |The company applies a 40% markup on the total cost to determine the selling price.### Calculation Steps#### (a) Total Unit CostUpon calculating the total unit cost, the correct value is found to be **$55**.#### (b) Target Selling PriceThe task is to compute the target selling price based on the total cost and the markup percentage.### Instructions- For educational purposes, please verify all calculations and validate them with the given data for better understanding.- Ensure proper comprehension of fixed and variable costs, as they are crucial for pricing strategy and overall financial planning.This analysis provides insights into cost management and pricing strategies within manufacturing sectors.

Selling price includes the total cost and profit. Selling price = Total cost + Profit

Flint Corporation makes a commercial-grade cooking griddle. The following information is available for Flint Corporation's anticipated annual volume of 26,500 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $8 Fixed selling and administrative expenses (a) The company uses a 40% markup percentage on total cost. Your answer is correct. Compute the total unit cost. (b) Total cost per unit $ eTextbook and Media Per Unit Compute the target selling price. $14 $6 $10 Target selling price $ 55 Total $291,500 $159,000 Attempts: 1 of 5 used

Flint Corporation makes a commercial-grade cooking griddle. The following information is available for Flint Corporation's anticipated annual volume of 26,500 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $8 Fixed selling and administrative expenses (a) The company uses a 40% markup percentage on total cost. Your answer is correct. Compute the total unit cost. (b) Total cost per unit $ eTextbook and Media Per Unit Compute the target selling price. $14 $6 $10 Target selling price $ 55 Total $291,500 $159,000 Attempts: 1 of 5 used

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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