Best Buy Corp. has been given the following info regarding a new product they wish to launch. Prod. Cost using traditional costing method - 3.00 per unit Prod Cost using activity based costing = 5.00 per unit nonproduction costs using activity based costing method = 1.50 per unit. Best Buy Corp would like the price of the new product to cover all costs plus a 100% markup. What price per unit should Best Buy Corp charge for their new product?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Best Buy Corp. has been given the following
info regarding a new product they wish to
launch. Prod. Cost using traditional costing
method - 3.00 per unit Prod Cost using activity
based costing = 5.00 per unit nonproduction
costs using activity based costing method = 1.50
per unit. Best Buy Corp would like the price of
the new product to cover all costs plus a 100%
markup. What price per unit should Best Buy
Corp charge for their new product?
Transcribed Image Text:Best Buy Corp. has been given the following info regarding a new product they wish to launch. Prod. Cost using traditional costing method - 3.00 per unit Prod Cost using activity based costing = 5.00 per unit nonproduction costs using activity based costing method = 1.50 per unit. Best Buy Corp would like the price of the new product to cover all costs plus a 100% markup. What price per unit should Best Buy Corp charge for their new product?
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