TB MC Qu. 23-112 (Static) Pinkin Incorporated needs to determine a price... Pinkin Incorporated needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost of the phone. Pinkin expects to sell 30,000 phones. Additional information is as follows: Variable Costs per Unit Direct materials Direct labor Overhead General and administrative Fixed Costs (total) $ 15 Overhead 49 General and administrative 20 50 Using the total cost method what price should Pinkin charge? $ 85,000 65,000

TB MC Qu. 23-112 (Static) Pinkin Incorporated needs to determine a price... Pinkin Incorporated needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost of the phone. Pinkin expects to sell 30,000 phones. Additional information is as follows: Variable Costs per Unit Direct materials Direct labor Overhead General and administrative Fixed Costs (total) $ 15 Overhead 49 General and administrative 20 50 Using the total cost method what price should Pinkin charge? $ 85,000 65,000

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 19E

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Question

TB MC Qu. 23-112 (Static) Pinkin Incorporated needs to determine a price...
Pinkin Incorporated needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total
cost of the phone. Pinkin expects to sell 30,000 phones. Additional information is as follows:
Variable Costs per Unit
Direct materials
Direct labor
Overhead
General and administrative
Multiple Choice
Using the total cost method what price should Pinkin charge?
O
O
$156.10
$162.50
$130.10
Fixed Costs (total)
O $142.50
O $161.25
$ 15 Overhead
49 General and administrative
20
50
$ 85,000
65,000

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