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Garcia Company sells snowboards. Each snowboard requires direct materials of $114, direct labor of $44, variable overhead of $59, and variable selling, general, and administrative costs of $17. The company has fixed overhead costs of $663,000 and fixed selling, general, and administrative costs of $135,000. It expects to produce and sell 11,400 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.)

Garcia Company sells snowboards. Each snowboard requires direct materials of $114, direct labor of $44, variable overhead of $59, and variable selling, general, and administrative costs of $17. The company has fixed overhead costs of $663,000 and fixed selling, general, and administrative costs of $135,000. It expects to produce and sell 11,400 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.)

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 $114, direct labor of $44, variable overhead of $59, and variable selling, general, and administrative costs of $17. The company has fixed overhead costs of $663,000 and fixed selling, general, and administrative costs of $135,000. It expects to produce and sell 11,400 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.)
Transcribed Image Text:QS 23-16 (Algo) Pricing using total cost LO P6 Garcia Company sells snowboards. Each snowboard requires direct materials of $114, direct labor of $44, variable overhead of $59, and variable selling, general, and administrative costs of $17. The company has fixed overhead costs of $663,000 and fixed selling, general, and administrative costs of $135,000. It expects to produce and sell 11,400 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.)
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