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Garcia Company sells snowboards. Each snowboard requires direct materials of $112, direct labor of $42, variable overhead of $57, and variable selling, general, and administrative costs of $15. The company has fixed overhead costs of $659,000 and fixed selling, general, and administrative costs of $125,000. It expects to produce and sell 11,200 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Selling price per unit

Garcia Company sells snowboards. Each snowboard requires direct materials of $112, direct labor of $42, variable overhead of $57, and variable selling, general, and administrative costs of $15. The company has fixed overhead costs of $659,000 and fixed selling, general, and administrative costs of $125,000. It expects to produce and sell 11,200 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) 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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QS 23-16 (Algo) Pricing using total cost LO P6 Garcia Company sells snowboards. Each snowboard requires direct materials of $112, direct labor of $42, variable overhead of $57, and variable selling, general, and administrative costs of $15. The company has fixed overhead costs of $659,000 and fixed selling, general, and administrative costs of $125,000. It expects to produce and sell 11,200 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Selling price per unit
Transcribed Image Text:QS 23-16 (Algo) Pricing using total cost LO P6 Garcia Company sells snowboards. Each snowboard requires direct materials of $112, direct labor of $42, variable overhead of $57, and variable selling, general, and administrative costs of $15. The company has fixed overhead costs of $659,000 and fixed selling, general, and administrative costs of $125,000. It expects to produce and sell 11,200 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Selling price per unit
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