in the picture Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 15,000 units follow.The company targets a 12.0% markup on total cost.Variable Costs per Unit$ 11035Direct materialsDirect laborOverhead30Selling, general and administrative8Fixed Costs (total)$ 480,000450,000OverheadSelling, general and administrative1. Compute the total cost per unit if 15,000 units are produced.2. Compute the dollar markup per unit.3. Compute the selling price per unit.(For all requirements, round your final answers to the nearest dollar amounts.)1. Total cost per unit2. Markup per unit3. Selling price perunit

Solution 1: Total cost per unit = total variable cost per unit + fixed cost per unit = (110 + 35 +30…

e company targets a 12.0% markup on total cost. Variable Costs per Unit Direct materials $ 110 Direct labor 35 Overhead 30 Selling, general and administrative 8 Fixed Costs (total) Overhead $ 480,000 Selling, general and administrative 450,000 Compute the total cost per unit if 15.000 units are produced.

e company targets a 12.0% markup on total cost. Variable Costs per Unit Direct materials $ 110 Direct labor 35 Overhead 30 Selling, general and administrative 8 Fixed Costs (total) Overhead $ 480,000 Selling, general and administrative 450,000 Compute the total cost per unit if 15.000 units are produced.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...

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