Calculate gross profit, cost of goods sold, and selling price MBI, Inc., had sales of $600 million for fiscal 2016. The company’s gross profit ratio for that year was 31.2%.Required:a. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2016.b. Assume that a new product is developed and that it will cost $1,634 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2016.c. From a management viewpoint, what would you do with this information?
Calculate gross profit, cost of goods sold, and selling price MBI, Inc., had sales of $600 million for fiscal 2016. The company’s gross profit ratio for that year was 31.2%.Required:a. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2016.b. Assume that a new product is developed and that it will cost $1,634 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2016.c. From a management viewpoint, what would you do with this information?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 33BE
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Calculate gross profit, cost of goods sold, and selling price MBI, Inc., had sales of $600 million for fiscal 2016. The company’s gross profit ratio for that year was 31.2%.
Required:
a. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2016.
b. Assume that a new product is developed and that it will cost $1,634 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2016.
c. From a management viewpoint, what would you do with this information?
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