Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit 0.90 The dollar amount of desired profit from the production and sale of the company's product is a.$105,840 b.$225,000 c.$220,500 d.$96,000
Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit 0.90 The dollar amount of desired profit from the production and sale of the company's product is a.$105,840 b.$225,000 c.$220,500 d.$96,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
The dollar amount of desired profit from the production and sale of the company's product is
Fixed |
$82,000 |
Fixed selling and administrative costs | 45,000 |
Variable direct materials cost per unit | 5.50 |
Variable direct labor cost per unit | 7.65 |
Variable factory overhead cost per unit | 2.25 |
Variable selling and administrative cost per unit | 0.90 |
The dollar amount of desired profit from the production and sale of the company's product is
a.$105,840
b.$225,000
c.$220,500
d.$96,000
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