Product X Product Y Product Z 100,000 200,000 20,000 20 2,000 Total Units produced Materials in kg 200,000 350,000 100,000 350,000 16,000| 50,000 50,000 Labor hours 25,000 Equipment Set Ups Number of production batches 61,000 10 10,000 50 80 10,000 22,000 Total Costs P 700,000 1,220,000 88,000 Materials Labor Equipment Set Ups Batch packaging 176,000 Other fixed costs to be allocated based on labor hours 2,013,000 If XYZ uses ABC to improve the pricing of its products and it aims to have a 45% gross profit rate, what would the selling price of a unit of Product Y be?
Product X Product Y Product Z 100,000 200,000 20,000 20 2,000 Total Units produced Materials in kg 200,000 350,000 100,000 350,000 16,000| 50,000 50,000 Labor hours 25,000 Equipment Set Ups Number of production batches 61,000 10 10,000 50 80 10,000 22,000 Total Costs P 700,000 1,220,000 88,000 Materials Labor Equipment Set Ups Batch packaging 176,000 Other fixed costs to be allocated based on labor hours 2,013,000 If XYZ uses ABC to improve the pricing of its products and it aims to have a 45% gross profit rate, what would the selling price of a unit of Product Y be?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![XYZ Corporation manufactures three products with the following details:
Product X Product Y Product Z
Total
Units produced
Materials in kg
200,000 350,000
100,000 350,000
50,000
100,000
50,000
200,000
Labor hours
25,000
20,000
16,000
61,000
Equipment Set Ups
Number of production batches
50
20
10
80
10,000
2,000
10,000
22,000
Total Costs
Materials
P 700,000
Labor
1,220,000
Equipment Set Ups
Batch packaging
88,000
176,000
Other fixed costs to be allocated based on labor hours
If XYZ uses ABC to improve the pricing of its products and it aims to have a 45% gross
profit rate, what would the selling price of a unit of Product Y be?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5c995b5-e313-4596-bc3c-9d29a8d6d898%2F55f03676-8782-4265-92ad-d8c4ce940d63%2F9878ftn_processed.png&w=3840&q=75)
Transcribed Image Text:XYZ Corporation manufactures three products with the following details:
Product X Product Y Product Z
Total
Units produced
Materials in kg
200,000 350,000
100,000 350,000
50,000
100,000
50,000
200,000
Labor hours
25,000
20,000
16,000
61,000
Equipment Set Ups
Number of production batches
50
20
10
80
10,000
2,000
10,000
22,000
Total Costs
Materials
P 700,000
Labor
1,220,000
Equipment Set Ups
Batch packaging
88,000
176,000
Other fixed costs to be allocated based on labor hours
If XYZ uses ABC to improve the pricing of its products and it aims to have a 45% gross
profit rate, what would the selling price of a unit of Product Y be?
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