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The Needle Company produces coloring books and had the following information available when it produced and sold 30,000 units for $3.25 each: $12,000 Administrative salaries Overhead (variable) Wages for factory workers If the company uses cost plus pricing and would like to achieve a 30% profit, what price should it charge for each product rounded to the nearest penny? Direct materials Advertising (variable) Overhead (fixed) 6,000 21,000 $3,000 9,000 33,000

The Needle Company produces coloring books and had the following information available when it produced and sold 30,000 units for $3.25 each: $12,000 Administrative salaries Overhead (variable) Wages for factory workers If the company uses cost plus pricing and would like to achieve a 30% profit, what price should it charge for each product rounded to the nearest penny? Direct materials Advertising (variable) Overhead (fixed) 6,000 21,000 $3,000 9,000 33,000

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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The Needle Company produces coloring books and had the following information available when it produced and sold 30,000 units for $3.25 each: Direct materials $12,000 Advertising (variable) Overhead (fixed) 6,000 Overhead (variable) Wages for factory workers If the company uses cost plus pricing and would like to achieve a 30% profit, what price should it charge for each product rounded to the nearest penny? Administrative salaries 21,000 $3,000 9,000 33,000
Transcribed Image Text:The Needle Company produces coloring books and had the following information available when it produced and sold 30,000 units for $3.25 each: Direct materials $12,000 Advertising (variable) Overhead (fixed) 6,000 Overhead (variable) Wages for factory workers If the company uses cost plus pricing and would like to achieve a 30% profit, what price should it charge for each product rounded to the nearest penny? Administrative salaries 21,000 $3,000 9,000 33,000
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