Moon desires a profit equal to an 18% return on invested assets of $1,440,000. a. Determine the amount of desired profit from the production and sale of Product T. fill in the blank 1 of 1$ b. Determine the total variable costs for the production and sale of 75,000 units of Product T. fill in the blank 1 of 1$ c. Determine the markup percentage for Product T. Round your answer to one decimal place.
-
Question Content Area
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:
Fixed costs:Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 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 $1,440,000.a. Determine the amount of desired profit from the production and sale of Product T.
fill in the blank 1 of 1$b. Determine the total variable costs for the production and sale of 75,000 units of Product T.
fill in the blank 1 of 1$c. Determine the markup percentage for Product T. Round your answer to one decimal place.
fill in the blank 1 of 1%d. Determine the unit selling price of Product T. Round your answer to two decimal places.
fill in the blank 1 of 1$
Step by step
Solved in 3 steps
