Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 33,000 units follow. The company targets a profit of $313,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $ 83 53 38 28 $ 683,000 616,000 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.
Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 33,000 units follow. The company targets a profit of $313,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $ 83 53 38 28 $ 683,000 616,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Exercise 23-12 (Algo) Pricing using variable costs LO P6
Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 33,000 units follow.
The company targets a profit of $313,000 on this product.
Variable Costs per Unit
Direct materials
Direct labor
Overhead
Selling, general and administrative
Fixed Costs (total)
Overhead
Selling, general and administrative
1. Total variable costs
1. Markup percentage
2. Markup per unit
3. Selling price per unit
$ 83
53
38
28
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.)
%
$ 683,000
616,000
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