Computation of Sales price and Target cost per unit: The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost. After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit. However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit. Requirement1: TheComputation of Target cost per unit for new product, Cloth shopping bag.

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Answer 1

Question

Chapter 21, Problem 6CP

To determine

Computation of Sales price and Target cost per unit:

The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit.

Requirement1:

TheComputation of Target cost per unit for new product, Cloth shopping bag.

To determine

Requirement2:

The Recommendation on manufacturing of new product.

Expert Solution & Answer

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See solution

Answer 2

Question

Chapter 21, Problem 6CP

To determine

Computation of Sales price and Target cost per unit:

The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit.

Requirement1:

TheComputation of Target cost per unit for new product, Cloth shopping bag.

To determine

Requirement2:

The Recommendation on manufacturing of new product.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem 6CP

To determine

Computation of Sales price and Target cost per unit:

The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit.

Requirement1:

TheComputation of Target cost per unit for new product, Cloth shopping bag.

To determine

Requirement2:

The Recommendation on manufacturing of new product.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 6CP

To determine

Computation of Sales price and Target cost per unit:

The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit.

Requirement1:

TheComputation of Target cost per unit for new product, Cloth shopping bag.

To determine

Requirement2:

The Recommendation on manufacturing of new product.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem 6CP

To determine

Computation of Sales price and Target cost per unit:

The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit.

Requirement1:

TheComputation of Target cost per unit for new product, Cloth shopping bag.

To determine

Requirement2:

The Recommendation on manufacturing of new product.

Answer 6

Chapter 21, Problem 6CP

To determine

Computation of Sales price and Target cost per unit:

The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit.

Requirement1:

TheComputation of Target cost per unit for new product, Cloth shopping bag.

Answer 7

Chapter 21, Problem 6CP

To determine

Computation of Sales price and Target cost per unit:

The units sold is based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

However, the reverse computation may also be required when the estimated market price is given and expected markup %, then the target cost per unit may be computed by deducting the profit margin per unit from selling price to arrive at the amount of target cost per unit.

Requirement1:

TheComputation of Target cost per unit for new product, Cloth shopping bag.

Answer 8

To determine

Requirement2:

The Recommendation on manufacturing of new product.

Answer 9

To determine

Requirement2:

The Recommendation on manufacturing of new product.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

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Requirement2:

The Recommendation on manufacturing of new product.

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Chapter 21 Solutions

Concept explainers

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Requirement2: The Recommendation on manufacturing of new product.

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Chapter 21 Solutions

Requirement2:

The Recommendation on manufacturing of new product.