Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. d. Determine the unit selling price of Product T. Round your answer to two decimal places. fill in the blank 1 of 1$
Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. d. Determine the unit selling price of Product T. Round your answer to two decimal places. fill in the blank 1 of 1$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows:
Variable costs per unit:
| Direct materials | $ 7.00 |
|---|---|
| Direct labor | 3.50 |
| Factory |
1.50 |
| Selling and administrative expenses | 3.00 |
| Total | $15.00 |
Fixed costs:
| Line Item Description | Amount |
|---|---|
| Factory overhead | $45,000 |
| Selling and administrative expenses | 20,000 |
Moon desires a profit equal to an 18%
d. Determine the unit selling price of Product T. Round your answer to two decimal places.
fill in the blank 1 of 1$
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