RST Company has a factory with fixed costs of $750,000 and a production capacity of 200,000 units annually. Its product sells with a 25% contribution margin. The target profit is $450,000. At full production, what does the selling price per unit need to be? Show your complete solution.

RST Company has a factory with fixed costs of $750,000 and a production capacity of 200,000 units annually. Its product sells with a 25% contribution margin. The target profit is $450,000. At full production, what does the selling price per unit need to be? Show your complete solution.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

See similar textbooks

Related questions

Q: Gain or loss

A: Step 1: Definition of Realized GainA realized gain occurs when the sales proceeds from an asset…

Q: The amount of the ending inventory is

A: Concept of Beginning InventoryBeginning Inventory refers to the value of goods available for sale…

Q: provide correct answer general accounting

A: Step 1: Definition of Operating CycleThe Operating Cycle represents the time it takes for a company…

Q: Provide correct solution accounting

A: Variable rate = (Cost of the highest activity level - Cost of the lowest activity level) / (Highest…

Q: SUBJECT: FINANCIAL ACCOUNTING

A: Explanation of Tax Burden Ratio: Tax burden ratio measures how much of a company's pre-tax profit it…

Q: What is the stockholder's equity at the end of the year on these general accounting question?

A: To calculate the stockholders' equity at the end of the year, we can follow this…

Q: Financial Accounting

A: Step 1: Define Net Working Capital (NWC)Net Working Capital (NWC) measures a company's short-term…

Q: cash flow for this project answer

A: Step 1: Given Value for Calculation Current market value of lot = $725,000 Building cost =…

Q: Provide answer this general accounting question

A: Step 1: Define Standard Cost per UnitThe Standard Cost per Unit is the estimated cost of producing…

Q: What is the effective of this transaction on these financial accounting question?

A: Step 1: Define Common Stock IssuanceCommon stock issuance refers to the process by which a…

Q: Answer please

A: The gross margin ratio measures a company's profitability by showing the percentage of revenue that…

Q: Find out

A: Concept of Cost-Volume-Profit (CVP) AnalysisCost-Volume-Profit (CVP) Analysis is a financial tool…

Q: ?

A: Concept of Sales RevenueSales revenue is the total income a company generates from selling goods or…

Q: Bucket Corporation had the following income statement: Sales $53,000 Less: Variable costs $28,000…

A: Concept of Contribution MarginThe Contribution Margin is the amount remaining after subtracting…

Q: Fresh Foods has sales of $216,500, total assets of $196,200, a debt-equity ratio of 2.15, and a…

A: The equity multiplier is a measure of financial leverage and is calculated as:Equity…

Q: What is the maximum inventory of croissants held in a given ordering cycle of this financial…

A: Step 1: Define Maximum Inventory in Ordering CycleMaximum Inventory is the highest level of…

Q: expert of general account answer

A: Step 1: Introduction to property, plant and equipmentProperty, plant, and equipment refers to those…

Q: General Accounting

A: Step 1: Define Taxable Income for CorporationsTaxable Income is the amount of income subject to tax…

Q: General accounting

A: Step 1: Define Accounts Receivable Turnover RatioThe Accounts Receivable Turnover Ratio measures how…

Q: Help

A: Step 1: Definition of LiabilitiesLiabilities refer to the financial obligations of a company,…

Q: Subject: financial accounting

A: Explanation of Net Profit Margin (NPM): Net Profit Margin is a financial ratio that measures how…

Q: I need help with accounting question

A: Step 1: Definition of Direct Labor Cost CalculationThe total direct labor cost is calculated based…

Q: None

A: Formula:𝑟𝐸′ = 𝑟𝐸 + (𝐷/𝐸) (𝑟𝐸 − 𝑟𝐷) Given from the previous calculations:𝑟𝐸 (Unlevered…

Q: Ans?

A: Step 1: Definition of High-Low MethodThe high-low method is used to separate mixed costs into their…

Q: Return on equity

A: The question requires the determination of the ROE. Return on equity (ROE) is a financial metric…

Q: General accounting

A: Step 1: Definition of the High-Low MethodThe High-Low Method is a cost estimation technique that…

Q: What amount would the company record the land accounting question

A: Step 1: Define Fixed AssetsA fixed asset can be defined as a valuable a company uses in the…

Q: answer please

A: Case -2 if one assuming the cost of goods sold is $3,800.00Calculation of total manufacturing costs…

Q: Question

A: Step 1:Operating Leverage can be calculated by dividing the contribution margin by the net income.…

Q: what is Archware's' net income? general accountim

A: Step 1: Definition of Net Profit MarginNet profit margin is a financial ratio that measures how much…

Q: quesrion 2

A: To calculate the applied overhead, we multiply the direct labor cost by the overhead rate. In this…

Q: Hello tutor please help me

A: Step 1: Definition of Net IncomeNet income is the most important indicator of a business's…

Q: Solve this example and accounting

A: Step 1: Definition of Cost VarianceCost variance measures the difference between the expected…

Q: correct answer please

A: Step 1: Definition of Direct LaborDirect labor refers to the amount of wages of the persons who are…

Q: General Accounting

A: Step 1: Define High-Low MethodThe high-low method is a technique used to estimate the variable and…

Q: Raymond Corp. reported beginning total assets of $20,000,000 and ending total assets of $24,000,000…

A: Explanation of Total Assets: Total assets represent everything of value that a company owns,…

Q: ! Required information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8,…

A: YearRevenue RecognizedGross Profit (Loss)2024$2,800,000$784,0002025$2,998,000($892,000)…

Q: One year ago, you purchased 500 shares of Summit Tech Corp. stock at a price of $10.50 per share.…

A: The question requires the determination of the total percentage return of a stock. A "total…

Q: do fast answer of this General accounting question

A: Step 1: DefinitionThe days sales outstanding (DSO) measures how quickly a company collects payments…

Q: ACP Manufacturing has budgeted a total overhead cost of $850,000 and budgeted machine hours of…

A: Explanation of Predetermined Overhead Rate (POHR):The predetermined overhead rate (POHR) is a…

Q: General accounting

A: We are tasked to compute for the Capital Gains Yield. The capital gains yield (CGY) measures the…

Q: None

A: 1. Understand the pricing: The quoted price of 96.22 and 96.87 refers to the percentage of the face…

Q: Financial accounting

A: Step 1: DefinitionDividend Yield measures the return from dividends as a percentage of the initial…

Q: 5 PTS

A: Explanation of Current Ratio: Current ratio is a liquidity measure that compares a company's current…

Q: Fresh Foods has sales of $216,500, total assets of $196,200, a debt-equity ratio of 2.15, and a…

A: Given:Sales = $216,500Total assets = $196,200Debt-to-equity = 2.15Profit margin = 2.9%…

Q: 5 POINTS

A: Explanation of Work-in-Process (WIP) Inventory: Work-in-process inventory represents partially…

Q: answer

A: To allocate the fringe benefits cost to Division A and Division B, we use the proportion of…

Q: What is the amount of total assets on the general accounting question?

A: Step 1: Define Total AssetsTotal Assets represent the total value of everything owned by a company,…

Q: answer plz financial accounting

A: Step 1: Definition of Total Manufacturing CostsTotal manufacturing costs refer to the total expenses…

Q: Provide answer accounting question

A: Step 1: Definition of Warranty LiabilityWarranty liability is an estimated obligation recorded by a…

Question

Hi expert please give me answer general accounting question

RST Company has a factory with fixed costs of $750,000 and a
production capacity of 200,000 units annually. Its product sells
with a 25% contribution margin. The target profit is $450,000. At
full production, what does the selling price per unit need to be?
Show your complete solution.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Please need answer
What does the selling price per unit need to be?
Selling price per unit ?
What does the selling price per unit need to be? Please provide solution this general accounting question
Need help this question solution
What does the selling price per unit need to be? General accounting question
Dove, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $60,000. The product is sold for $9.00 per unit and the company desires to earn a target profit of $30,000. What is the amount of sales that will be necessary to earn the desired profit?need answer this question
Don't Use Ai
Total fixed cost of a product is IDR 10,000,000 and variable cost is IDR 50,000 per unit. The sale price is IDR.75,000 per unit . How much products should be produced to get BEP? Prove your answer and make a graphic. ..And If the company need profit IDR 10,000,000. How much is the sales price? Prove your answer.
Pioneer Manufacturing has fixed costs of $60,000 and variable costs of $40 per unit. If they sell each unit for $100, how many units must be sold to earn a target profit of $40,000? (Round your answer). General Account
Dove, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $60,000. The product is sold for $9.00 per unit and the company desires to earn a target profit of $30,000. What is the amount of sales that will be necessary to earn the desired profit?
A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make. If there are 5,000 machine hours available to manufacture a product, income will be Group of answer choices the same if either product is made. $10,000 more if Product A is made. $10,000 less if Product B is made. $10,000 less if Product A is made.