Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 21,000 units follow. The company targets a profit of $301,000 on this product Varilable Costs per Ut Direct materials Direct labor Overhead $ 71 41 26 Selling. general and adeinistrative 16 Fixed Costs (total)Y Overhead Selling, general and adeinistrative $ 671,000 592,000 1. Compute the total variable cost and the markup percentage. 2 Compute the dollar markup per unit on variable cost 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest whole number.) Total variable costs 1. Markup percentage 2 Markup per unit 3. Selling price per unit
Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 21,000 units follow. The company targets a profit of $301,000 on this product Varilable Costs per Ut Direct materials Direct labor Overhead $ 71 41 26 Selling. general and adeinistrative 16 Fixed Costs (total)Y Overhead Selling, general and adeinistrative $ 671,000 592,000 1. Compute the total variable cost and the markup percentage. 2 Compute the dollar markup per unit on variable cost 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest whole number.) Total variable costs 1. Markup percentage 2 Markup per unit 3. Selling price per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer competely required1,2,3
Transcribed Image Text:Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 21,000 units follow.
The company targets a profit of S301,000 on this product
Varlable Costs per Unit
Direct materials
$ 71
Direct labor
41
Overhead
26
Selling, general and administrative
16
Fixed Costs (total)
Overhead
Selling, general and adeinistrative
$ 671,000
592,000
1. Compute the total variable cost and the markup percentage.
2 Compute the dollar markup per unit on variable cost
3. Compute the selling price per unit.
(For all requirements, round your final answers to the nearest whole number.)
1. Total variable costs
1. Markup percentage
2. Markup per unit
3. Selling price per unit
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