FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units. Additional information is as follows:
Variable Costs per Unit
Fixed Costs (total)
Direct materials
$ 13
Overhead
$ 45,000
Direct labor
14
General and administrative
18,000
Overhead
12
General and administrative
18
Using the total cost method what price should Galla charge?
Multiple Choice
$71.25
$87.00
$82.50
$75.75
$69.60
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Transcribed Image Text:Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials $ 13 Overhead $ 45,000 Direct labor 14 General and administrative 18,000 Overhead 12 General and administrative 18 Using the total cost method what price should Galla charge? Multiple Choice $71.25 $87.00 $82.50 $75.75 $69.60
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