Quality Data manufactures two products, CDs and DVDS, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDS. The predicted costs for the year 2009 are as follows: Variable Costs Fixed Costs Materials $200,000 $600,000 Other 350,000 600,000 Each product uses 50 percent of the materials costs. Based on manufacturing time, 40 percent of the other costs are assigned to the CDs, and 60 percent of the other costs are assigned to the DVDS. The management of Quality Data desires an annual profit of $50,000. (a) What price should Quality Data charge for each disk pack if management believes the DVDS sell for 20 percent more than the CDs? Round answers to the nearest cent. CDs $Answer DVDS $Answer (b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers, if appropriate. CDs $Answer DYDS $Answer

Quality Data manufactures two products, CDs and DVDS, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDS. The predicted costs for the year 2009 are as follows: Variable Costs Fixed Costs Materials $200,000 $600,000 Other 350,000 600,000 Each product uses 50 percent of the materials costs. Based on manufacturing time, 40 percent of the other costs are assigned to the CDs, and 60 percent of the other costs are assigned to the DVDS. The management of Quality Data desires an annual profit of $50,000. (a) What price should Quality Data charge for each disk pack if management believes the DVDS sell for 20 percent more than the CDs? Round answers to the nearest cent. CDs $Answer DVDS $Answer (b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers, if appropriate. CDs $Answer DYDS $Answer

Name: Product Pricing: Two ProductsQuality Data manufactures two products,
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Description: Product Pricing: Two ProductsQuality Data manufactures two products, CDs and DVDS, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are400,000 packs of CDs and 500,000 packs of DVDS. The predicted costs for the yea

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3PB

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