Sunland Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) Total unit variable cost $ Total unit fixed cost Total unit cost Per Unit $40 $ 60 $ 10 Sunland uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. 6 Total Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. $1,860,000 1,560,000
Sunland Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) Total unit variable cost $ Total unit fixed cost Total unit cost Per Unit $40 $ 60 $ 10 Sunland uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. 6 Total Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. $1,860,000 1,560,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sunland Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this
product at a budgeted volume of 60,000 units.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a1)
Total unit variable cost $
Total unit fixed cost
Total unit cost
Per Unit
$40
$
60
Sunland uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%.
69
10
6
Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product.
Total
$1,860,000
1,560,000
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