QS 25-16 (Algo) Pricing using total cost LO P6Garcia Company sells snowboards. Each snowboard requires direct materials of $115, direct labor of $45, variable overhead of $60,and variable selling, general, and administrative costs of $18. The company has fixed overhead costs of $665,000 and fixed selling.general, and administrative costs of $117,000. It expects to produce and sell 11,500 snowboards.What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Roundyour final answer to nearest whole dollar amounts.)Selling price$68 per unit

Step 1: Calculate Total Variable Costs per unitTotal Variable Costs per unit = Direct materials +…

Answered: QS 25-16 (Algo) Pricing using total…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...

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A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch. A. Calculate the contribution margin per unit for Grade A mulch. B. Calculate the contribution margin ratio of the Grade A mulch. C. Prepare a contribution margin income statement for the month of August.
QS 25-16 (Algo) Pricing using total cost LO P6 Garcia Company sells snowboards. Each snowboard requires direct materials of $106, direct labor of $36, variable overhead of $51. and variable selling, general, and administrative costs of $9. The company has fixed overhead costs of $647,000 and fixed selling. general, and administrative costs of $148.000. It expects to produce and sell 10,600 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? Note: Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts. Seling price per unit
QS 23-18 (Algo) Pricing using variable GoSnow sells snowboards. Each snowboard requires direct materials of $134, direct labor of $47, variable overhead of $57, and variable selling, general, and administrative costs of $22. The company has fixed overhead costs of $277,000 and fixed selling, general, and administrative costs of $347,000. The company has a target profit of $416,000. It expects to produce and sell 10,000 snowboards. Compute the selling price per unit using the variable Cost method. (Round your intermediate calculations and final answer to nearest whole dollar amounts.) Selling price $ 342 per unit
Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. a. Determine the amount of desired profit from the production and sale of Product T.fill in the blank 1 of 1$ b. Determine the total variable costs for the production and sale of 75,000 units of Product T.fill in the blank 1 of 1$ c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1% d. Determine the unit selling price of Product T. Round…
QS 25-18 (Static) Pricing using variable cost LO P6 GoSnow sells snowboards. Each snowboard requires direct materials of $110, direct labor of $35, variable overhead of $45, and variable selling. general, and administrative costs of $10. The company has fixed overhead costs of $265,000 and fixed selling, general, and administrative costs of $335,000. The company has a target profit of $200,000. It expects to produce and sell 10,000 snowboards. Compute the selling price per unit using the variable cost method. Sng price per unit
Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1%
Variable manufacturing overhead Direct materials Direct labor Fixed manufacturing overhead Variable marketing and administrative $ 20 25 24 17 6 Vegas produced and sold 10,000 units. If the product sells for $100, what is the contribution margin?
Question Content Area Make-or-Buy Decision Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $61 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 43% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Line Item Description Amount Direct materials $25.00 Direct labor 19.00 Factory overhead (43% of direct labor) 8.17 Total cost per unit $52.17 If Pizana Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 12% of the direct labor costs. Question Content Area a. Prepare a differential analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. Round your answers to two decimal places. If an…
HW Check my WC 800 1,000 600 Number of golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? $464,000 240,000 704,000 ? ok Required: 1. Complete the table. 2. Ramada sells its carts for $1,450 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. 5. Assume Ramada sold 300 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $21,000 profit. 7. Calculate Ramada's degree of operating leverage if it sells 850 carts. 8. Using the degree of operating leverage, calculate the change in Ramada's profit if sales are 15 percent less than expected. nces Complete this question by entering your answers in the tabs below. Required 1…
Question Content Area Make-or-Buy Decision Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $55 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Line Item Description Amount Direct materials $27.00 Direct labor 21.00 Factory overhead (42% of direct labor) 8.82 Total cost per unit $56.82 If Pizana Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 13% of the direct labor costs. Question Content Area a. Prepare a differential analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. Round your answers to two decimal places. If an…
QUESTION 3 Aldarees Company sells a product for SR 1,000 per unit. Variable costs are SR 600 per unit, fixed costs are SR 64,000. The company expects to sell 850 units in September. Calculate required units to earn target profit of SR 268,800 per month. OA 416 units OR 50 units C 832 units OD. 160 units QUESTION 4
Question Doom Bhd manufactures and sells a single product. Cost data for the product are given below: Variable costs per unit: Direct materials RM 7 Direct labour RM 10 Variable manufacturing overhead RM 5 Variable selling and administrative overhead RM 3 Total variable cost per unit RM 25 Fixed costs per month: Fixed manufacturing overhead RM315,000 Fixed selling and administrative overhead RM245,000 RM560,000 The product sells for RM60 per unit. Production and sales data for July and August, that is, the first two months of operations, follow: Units produced Units sold July 17,500 15,000 August 17,500 20,000 The…

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