Calculate the selling price if the company adds mark-up of 82% on variable manufacturi

Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter20: Variable Costing For Management Analysis
Section: Chapter Questions
Problem 20.22EX: Variable costing income statement and contribution margin analysis for a service company The actual...
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Question 12

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Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data:

Variable cost per unit:

 Direct material                                               R30                            

Direct labour                                                   R45

Manufacturing overheads                               R75

Sales commission                                           R15

Selling expenses                                             R23

Total fixed costs

Depreciation - factory                                     R27 000

Depreciation - administration                         R45 000

Rent - factory                                                  R31 500

Rent - head office                                           R22 500

Selling and administration cost                      R60 000

Required:

(c) Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.

 

 

 

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