TC Co is manufacturing and selling product M with the following information: Unit sales price = $70 Direct costs per unit: %3D Material = $32 Labour $12 Overheads= $6 %3D Selling and admin= $4 Fixed production overhead is at $1,920,000. Other non-production fixed overhead is $2,080,000. Average manufacturing and selling units is 300,000/year (at 75% production capacity). A customer is placing an order for 100,000 unit of M. This order comes with an additional requirement that items are needed to be packed in batch with cach 20,000 units and the packing cost is estimated at $2,000 per batch. Determine the minimum selling price for this order given that the management expects a profit of $1,600,000 for the year %3!

TC Co is manufacturing and selling product M with the following information: Unit sales price = $70 Direct costs per unit: %3D Material = $32 Labour $12 Overheads= $6 %3D Selling and admin= $4 Fixed production overhead is at $1,920,000. Other non-production fixed overhead is $2,080,000. Average manufacturing and selling units is 300,000/year (at 75% production capacity). A customer is placing an order for 100,000 unit of M. This order comes with an additional requirement that items are needed to be packed in batch with cach 20,000 units and the packing cost is estimated at $2,000 per batch. Determine the minimum selling price for this order given that the management expects a profit of $1,600,000 for the year %3!

Name: MoorTC Co is manufacturing and selling product M with the following i
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Description: MoorTC Co is manufacturing and selling product M with the following information:Unit sales price = S$70Direct costs per unit:%3DMaterial = $32Labour = $12Overheads = $6Selling and admin= $4Fixed production overhead is at $1,920,000. Other non-produc

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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