Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this new phone will require $244 of direct materials; $24 of direct labor; $35 of variable overhead; $32 of variable selling, general, and administrative costs; $49 of fixed overhead costs; and $24 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 175% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $940 per unit. Compute the target cost per unit if the company's target profit is 60% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs.

Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this new phone will require $244 of direct materials; $24 of direct labor; $35 of variable overhead; $32 of variable selling, general, and administrative costs; $49 of fixed overhead costs; and $24 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 175% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $940 per unit. Compute the target cost per unit if the company's target profit is 60% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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