**Variable Cost Method of Product Pricing**Smart Stream Inc. uses the variable cost method in applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows:### Variable Costs per Unit:- **Direct materials:** $150- **Direct labor:** $25- **Factory overhead:** $40- **Selling and administrative expenses:** $25- **Total variable cost per unit:** $240### Fixed Costs:- **Factory overhead:** $350,000- **Selling and administrative expenses:** $140,000Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000.#### Tasks:a. **Determine the variable costs and the variable cost amount per unit** for the production and sale of 10,000 cellular phones. - Total variable costs: $__________ - Variable cost amount per unit: $__________b. **Determine the variable cost markup percentage** for cellular phones. *Round to two decimal places.* - __________%c. **Determine the selling price of cellular phones.** If required, *round to the nearest dollar.* - $__________ per cellular phone

A. Total variable Cost = Variable Cost per unit × Number of cellular phones

Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $150 25 40 25 Total variable costs $240 Variable cost amount per unit Fixed costs: Factory overhead Selling and admin. exp. Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. $350,000 140,000 a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. % c. Determine the selling price of cellular phones. If

Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $150 25 40 25 Total variable costs $240 Variable cost amount per unit Fixed costs: Factory overhead Selling and admin. exp. Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. $350,000 140,000 a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. % c. Determine the selling price of cellular phones. If

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3C AND 3D
Current Attempt in Progress Bridgeport, Inc. manufactures and sells two products, Standard and Deluxe. Relevant per unit data for each product are given below: Selling price Variable costs Machine hours (a) Product Standard $44 $22 2 Deluxe Contribution margin per unit of limited resource $75 $30 3 Compute the contribution margin per unit of limited resource for each product. $ Standard Product Deluxe
Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 3,500 units of cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $ 77 Factory overhead $134,700 Direct labor 35 Selling and administrative expenses 47,300 Factory overhead 23 Selling and administrative expenses 19 Total variable cost per unit $154 Smart Stream desires a profit equal to a 14% return on invested assets of $422,300. a. Determine the total costs and the total cost amount per unit for the production and sale of 3,500 cellular phones. Round the cost per unit to two decimal places. Total cost Total cost amount per unit b. Determine the total cost markup percentage for cellular phones. Round your answer to two decimal places. c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone
Al Ziyabi Company, a leading textile manufacturer is required to prepare a cost-volume-profit analysis report for the two products being produced in its company. Product A Price per unit (RO) Particulars Sales price Material Direct wages Variable expenses Fixed expenses 17 8 100% of direct wages RO 1100 The following scenarios are predicted by the Management: Scenario 1: 200 units of product A and 100 units of product B Scenario 2: 150 units of product A and 150 units of product B Scenario 3: 250 units of product A and 50 units of product B Product B Price per unit (RO) 4 100% of direct wages RO 1100 Ï
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ RQ Selling price per unit $ 167.36 $ 303.39 $ 411.96 Variable cost per unit $ 136.00 $ 212.11 5 303.18 Minutes on the constraint 1.60 5.60 7.40 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places)
Subject: acounting
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $403,200. Basic $24.00 $ 17.00 66,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Required A Required B Complete this question by entering your answers in the tabs below. Custom $ 59.00 $38.00 44,000 Basic beds Custom beds Required C Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: In your computations, round up the total units to break-even to the nearest whole number and round other intermediate…
Please help me with correct answer thanku
Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 90 per unit Factory overhead $223,800 Direct labor 41 Selling and admin. exp. 78,600 Factory overhead 27 Selling and admin. exp. 22 Total $180 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $630,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 4,500 units of cellular phones. Round to two decimal places. Total variable costs $fill in the blank 1 Variable cost amount per unit $fill in the blank 2 b. Determine the variable cost markup percentage for cellular phones.fill in the blank 3 % c. Determine the selling price of cellular phones. Round to…