For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer. To Calculate: Unit product cost.

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Answer 1

Question

Chapter 6A, Problem 6A.9P

1.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

2.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Mark up percentage on cost.

3.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Selling price of new product.

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Absorption Costing Approach to Cost-Plus Pricing Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product. The company plans to invest $200,000 in operating assets to produce and sell 16,000 units. Its required return on investment (ROI) in its operating assets is 18%. The accounting department has provided cost estimates for the new product as shown below: Required: 1. What is the unit product cost for the new product? 2. What is the markup percentage on absorption cost for the new product? 3. What selling price would the company establish for its new product using a markup percentage on absorption cost? (Round your answer to the nearest penny.)

Subject :- Subject

K A product costs $500 to manufacture and $30 to market and $10 to distribute (ship to customers) R&D costs are allocated at $20 per unit. Based on a targeted rate of return, manager uses a mark-up of 10%. What is the markup component based on a Cost-Plus pricing approach?

Answer 2

Question

Chapter 6A, Problem 6A.9P

1.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

2.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Mark up percentage on cost.

3.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Selling price of new product.

Expert Solution & Answer

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Answer 3

Question

Chapter 6A, Problem 6A.9P

1.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

2.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Mark up percentage on cost.

3.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Selling price of new product.

Expert Solution & Answer

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Answer 4

Question

Chapter 6A, Problem 6A.9P

1.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

2.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Mark up percentage on cost.

3.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Selling price of new product.

Expert Solution & Answer

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Answer 5

Chapter 6A, Problem 6A.9P

1.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

2.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Mark up percentage on cost.

3.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Selling price of new product.

Answer 6

Chapter 6A, Problem 6A.9P

1.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

Answer 7

Chapter 6A, Problem 6A.9P

1.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

Answer 8

2.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Mark up percentage on cost.

Answer 9

2.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Mark up percentage on cost.

Answer 10

3.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Selling price of new product.

Answer 11

3.

To determine

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate: Selling price of new product.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 6A - Absorption Costing Approach to Cost-Plus Pricing...Ch. 6A - Prob. 6A.2E Ch. 6A - Prob. 6A.3E Ch. 6A - Prob. 6A.4E Ch. 6A - Prob. 6A.5E Ch. 6A - Prob. 6A.6E Ch. 6A - Prob. 6A.7E Ch. 6A - Prob. 6A.8P Ch. 6A - Prob. 6A.9P Ch. 6A - Prob. 6A.10P

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer. To Calculate: Unit product cost.

Solution Summary: The author explains that for accepting an extra offer company needs to recover at least variable cost from that offer. To accept these types of fixed cost is irrelevant.

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.

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Chapter 6A Solutions

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer. To Calculate: Unit product cost.

Solution Summary: The author explains that for accepting an extra offer company needs to recover at least variable cost from that offer. To accept these types of fixed cost is irrelevant.

Concept Introduction: For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer. To Calculate:Unit product cost.

Want to see the full answer?

Chapter 6A Solutions

Concept Introduction:

For accepting an extra offer company needs to recover at least variable cost from that offer. To recover the cost from that offer, the company sold it at variable cost. To accept these types of fixed cost is irrelevant for accepting the offer.

To Calculate:Unit product cost.