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The dollar amount of the desired profit from the production and sale of the company's product is O a. $84,000 O b. $89,600 O c. $70,000 O d. $39,200

The dollar amount of the desired profit from the production and sale of the company's product is O a. $84,000 O b. $89,600 O c. $70,000 O d. $39,200

FINANCIAL ACCOUNTING
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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Dotterel Corporation uses the variable cost concept of product pricing. The cost information for the production and sale of 35,000 units of its sole product follows. Dotterel desires a profit equal to an 11.2% rate of return on invested assets of $350,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit $105,000 35,000 4.34 5.18 0.98 0.70 Variable factory overhead cost per unit Variable selling and administrative cost per unit The dollar amount of the desired profit from the production and sale of the company's product is O a. $84,000 O b. $89,600 O c. $70,000 O d. $39,200
Transcribed Image Text:Dotterel Corporation uses the variable cost concept of product pricing. The cost information for the production and sale of 35,000 units of its sole product follows. Dotterel desires a profit equal to an 11.2% rate of return on invested assets of $350,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit $105,000 35,000 4.34 5.18 0.98 0.70 Variable factory overhead cost per unit Variable selling and administrative cost per unit The dollar amount of the desired profit from the production and sale of the company's product is O a. $84,000 O b. $89,600 O c. $70,000 O d. $39,200
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