Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 8, Problem 8.4E
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporations anticipated annual volume of 30,000 units.
Per Unit | Total | |
Direct materials | $17 | |
Direct labor | $ 8 | |
Variable manufacturing |
$11 | |
Fixed manufacturing overhead | $300,000 | |
Variable selling and administrative expenses | $4 | |
Fixed selling and administrative expenses | $150,000 |
The company uses a 40% markup percentage on total cost.
Instructions
(a) Compute the total cost per unit.
(b) Compute the target selling price.
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Managerial Accounting: Tools for Business Decision Making
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