Seaco Products produces gears with the following unit costs: variable manufacturing costs $8, fixed manufacturing overhead $3, variable selling and administrative expenses $2, and fixed selling and administrative expenses $5. Using a 35% markup percentage on total unit cost, compute the target selling price. (Round answer to 2 decimal places (e.g., 25.02).) Target selling price $

Seaco Products produces gears with the following unit costs: variable manufacturing costs $8, fixed manufacturing overhead $3, variable selling and administrative expenses $2, and fixed selling and administrative expenses $5. Using a 35% markup percentage on total unit cost, compute the target selling price. (Round answer to 2 decimal places (e.g., 25.02).) Target selling price $

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Sierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %
Mallory Company uses the product cost method of applying the cost-plus approach to product pricing. It produces and sells Product X at a total cost of $35 per unit, of which $28 is product cost and $7 is selling and administrative expenses. In addition, the total cost of $35 is made up of $24 variable cost and $11 fixed cost. The desired profit is $8 per unit. Determine the markup percentage on product cost. Round your answer to one decimal place. %
Bambam Inc. produces BingBong products. Cost data are as follows: Fixed selling cost of 200; variable product cost of 5 per unit; variable selling cost of 2 per unit and fixed overhead cost of 500. If the company will produce 500 units, what is the total cost?
Bramble Corporation produces microwave ovens. The following unit cost information is available: direct materials $30, direct labor $24, variable manufacturing overhead $17, fixed manufacturing overhead $43, variable selling and administrative expenses $19, and fixed selling and administrative expenses $34. Its desired ROI per unit is $31. Compute the markup percentage using variable-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%.) Markup percentage %
Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $36, direct labor $24, variable manufacturing overhead $18, fixed manufacturing overhead $40, variable selling and administrative expenses $14, and fixed selling and administrative expenses $28. Its desired ROI per unit is $30. Compute the markup percentage using absorption-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%.) Markup percentage %
Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $12, direct labor $4, variable manufacturing overhead $9, fixed manufacturing overhead $10, variable selling and administrative expenses $5, and fixed selling and administrative expenses $12. Using a 45% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.) Target selling price $
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $88 per unit. Determine the markup percentage on total cost. %
Monty Corporation produces microwave ovens. The following unit cost information is available: direct materials $36, direct labor $26, variable manufacturing overhead $19, fixed manufacturing overhead $44, variable selling and administrative expenses $15, and fixed selling and administrative expenses $20. Its desired ROI per unit is $30.40. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%.) Markup percentage %
Seascape Company has two products: Product A has a contribution margin per unit of$20and Product B has a contribution margin of $22 per unit. Required: Calculate the weighted-average unit contribution margin if Seascape has a35%/65% (Product A/Product B) product mix. Note: Round your answer to 2 decimal places.
Jamison Company produces and sells Product X at a total cost of $1,300 per unit, of which $880 is product cost and $420 is selling and administrative expenses. In addition, the total cost of $1,300 is made up of $740 variable cost and $560 fixed cost. The desired profit is $169 per unit. Determine the markup percentage on total cost.fill in the blank 1 %