Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 27,000 units follow. The company targets a profit of $307,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling $77 47 1. Variable cost per unit 2. Markup percentage 3. Selling price 32 22 Fixed Costs (in total) Overhead Selling Administrative 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.) 3. Compute the product's selling price using the variable cost method. (Round your intermediate percentage calculations and final answer to 2 decimal places.) $677,000 312,000 292,000 %
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 27,000 units follow. The company targets a profit of $307,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling $77 47 1. Variable cost per unit 2. Markup percentage 3. Selling price 32 22 Fixed Costs (in total) Overhead Selling Administrative 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.) 3. Compute the product's selling price using the variable cost method. (Round your intermediate percentage calculations and final answer to 2 decimal places.) $677,000 312,000 292,000 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 27,000 units follow. The
company targets a profit of $307,000 on this product.
Variable Costs per Unit
Direct materials
Direct labor
Overhead
Selling
$77
47
32
22
1. Variable cost per unit
2 Markup percentage
3.
Selling price
Fixed Costs (in total)
Overhead
Selling
Administrative
1. Compute the variable cost per unit.
2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.)
3. Compute the product's selling price using the variable cost method. (Round your intermediate percentage calculations and final
answer to 2 decimal places.)
$677,000
312,000
292,000
%
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