The West Company’s cost structure for a certain items at a level of 20,000 units per month are as follows: Manufacturing Costs: Direct Material 1.00 Direct Labor 1.20 Variable indirect cost .80 Fixed indirect cost .50 Selling and other: Variable 1.50 Fixed .90 Required: Calculate the selling price if the company is planning to set up a selling price with a markup of 45% based variable production cost.
The West Company’s cost structure for a certain items at a level of 20,000 units per month are as follows: Manufacturing Costs: Direct Material 1.00 Direct Labor 1.20 Variable indirect cost .80 Fixed indirect cost .50 Selling and other: Variable 1.50 Fixed .90 Required: Calculate the selling price if the company is planning to set up a selling price with a markup of 45% based variable production cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The West Company’s cost structure for a certain items at a level of 20,000 units per month are as follows:
Manufacturing Costs:
Direct Material 1.00
Direct Labor 1.20
Variable indirect cost .80
Fixed indirect cost .50
Selling and other:
Variable 1.50
Fixed .90
Required:
Calculate the selling price if the company is planning to set up a selling price with a markup of 45% based variable production cost.
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