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Garcia Co. sells snowboards. Each snowboard requires direct materials of $110, direct labor of $40, and variable overhead of $55. The company expects fixed overhead costs of $655,000 and fixed selling and administrative costs of $170,000 for the next year. It expects to produce and sell 11,000 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost? (Round your answer to 2 decimal places.) Selling price Per Unit

Garcia Co. sells snowboards. Each snowboard requires direct materials of $110, direct labor of $40, and variable overhead of $55. The company expects fixed overhead costs of $655,000 and fixed selling and administrative costs of $170,000 for the next year. It expects to produce and sell 11,000 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost? (Round your answer to 2 decimal places.) 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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Garcia Co. sells snowboards. Each snowboard requires direct materials of $110, direct labor of $40, and variable overhead of $55. The company expects fixed overhead costs of $655,000 and fixed selling and administrative costs of $170,000 for the next year. It expects to produce and sell 11,000 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost? (Round your answer to 2 decimal places.) Selling price Per Unit
Transcribed Image Text:Garcia Co. sells snowboards. Each snowboard requires direct materials of $110, direct labor of $40, and variable overhead of $55. The company expects fixed overhead costs of $655,000 and fixed selling and administrative costs of $170,000 for the next year. It expects to produce and sell 11,000 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost? (Round your answer to 2 decimal places.) Selling price Per Unit
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