Schwinn started producing a new product which requires an investment of $2,000,000 in assets. The costs to produce and sell 75,000 units are as follows. Additionally, the Company's policy is to earn 8% return on invested assets. How should they price the items using the Product Cost Method? Variable Costs: Fixed Costs: DM $8.00/unit Factory OH $750,000 $5.00 / unit SG&A $300,000 DL FOH $3.50 /unit SG&A $4.50/unit Total 22.00 / unit

Schwinn started producing a new product which requires an investment of $2,000,000 in assets. The costs to produce and sell 75,000 units are as follows. Additionally, the Company's policy is to earn 8% return on invested assets. How should they price the items using the Product Cost Method? Variable Costs: Fixed Costs: DM $8.00/unit Factory OH $750,000 $5.00 / unit SG&A $300,000 DL FOH $3.50 /unit SG&A $4.50/unit Total 22.00 / unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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