Sassy Company uses the product cost concept of applying the cost-plus approach to product pricing (this is the one we learned). Sassy Company desires a profit equal to a 15% rate of return on invested assets of $550,000. The costs and expenses of producing 35,000 unit- of Product H are as follows: (NOTE: This is the same fact pattern as the previous two questions) Fixed factory overhead cost $35,000 Fixed selling and administrative costs 16,500 Variable direct materials cost per unit 2.60 Variable direct labor cost per unit 4.30 Variable factory overhead cost per unit 1.30 Variable selling and administrative cost per unit 0.75 The markup percentage on total cost for the company's product is: + 23.2% O 38.9% O not possible to calculate with the information provided O 29.8%

Sassy Company uses the product cost concept of applying the cost-plus approach to product pricing (this is the one we learned). Sassy Company desires a profit equal to a 15% rate of return on invested assets of $550,000. The costs and expenses of producing 35,000 unit- of Product H are as follows: (NOTE: This is the same fact pattern as the previous two questions) Fixed factory overhead cost $35,000 Fixed selling and administrative costs 16,500 Variable direct materials cost per unit 2.60 Variable direct labor cost per unit 4.30 Variable factory overhead cost per unit 1.30 Variable selling and administrative cost per unit 0.75 The markup percentage on total cost for the company's product is: + 23.2% O 38.9% O not possible to calculate with the information provided O 29.8%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...

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