Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 59,700 units of its sole product. Magpie desires a profit equal to a 22% rate of return on invested assets of $588,000. Fixed factory overhead cost $38,100 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.32 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit 4.50 The cost per unit for the production and sale of the company's product is

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of
59,700 units of its sole product. Magpie desires a profit equal to a 22% rate of return on invested assets of $588,000.
Fixed factory overhead cost
$38,100
Fixed selling and administrative costs
7,500
Variable direct materials cost per unit
4.32
Variable direct labor cost per unit
1.88
Variable factory overhead cost per unit
1.13
Variable selling and administrative cost per unit
4.50
The cost per unit for the production and sale of the company's product is
Transcribed Image Text:Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 59,700 units of its sole product. Magpie desires a profit equal to a 22% rate of return on invested assets of $588,000. Fixed factory overhead cost $38,100 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.32 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit 4.50 The cost per unit for the production and sale of the company's product is
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