Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment. The company would like to develop a unified approach to pricing its product line for next year using cost-plus pricing but does not know what cost base should be used. Last year, ONEC earned $150,000 of profit from sales of its products and would like to earn $225,000 next year. Last year, the company incurred the following costs: Manufacturing Costs: Variable 260,000.00 Fixed 160,000.00 Selling and Administraitve: Variable 90,000.00 Fixed 180,000.00 ONEC's best harpoon costs $170 to manufacture and includes $95 of variable manufacturing costs and $75 of fixed overhead costs. ---------------------------- Assuming the company uses a markup on variable manufacturing costs (previously calculated as one of the markup bases), what is the recommended sales price of the harpoon? (answer to two decimal places)
Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment.
The company would like to develop a unified approach to pricing its product line for next year using cost-plus pricing but does not know what cost base should be used.
Last year, ONEC earned $150,000 of profit from sales of its products and would like to earn $225,000 next year.
Last year, the company incurred the following
Manufacturing Costs:
Variable 260,000.00
Fixed 160,000.00
Selling and Administraitve:
Variable 90,000.00
Fixed 180,000.00
ONEC's best harpoon costs $170 to manufacture and includes $95 of variable manufacturing costs and $75 of fixed
----------------------------
Assuming the company uses a markup on variable manufacturing costs (previously calculated as one of the markup bases), what is the recommended sales price of the harpoon? (answer to two decimal places)
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