Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit 0.90 The unit selling price for the company's product is a.$15.75 b.$22.05 c.$19.35 d.$21.25
Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit 0.90 The unit selling price for the company's product is a.$15.75 b.$22.05 c.$19.35 d.$21.25
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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Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
The unit selling price for the company's product is
| Fixed |
$82,000 |
| Fixed selling and administrative costs | 45,000 |
| Variable direct materials cost per unit | 5.50 |
| Variable direct labor cost per unit | 7.65 |
| Variable factory overhead cost per unit | 2.25 |
| Variable selling and administrative cost per unit | 0.90 |
The unit selling price for the company's product is
a.$15.75
b.$22.05
c.$19.35
d.$21.25
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