Homework Help is Here – Start Your Trial Now!
Business
Accounting
Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the lures for $0.20 per ounce. Each lure requires 1 ounce of materials. They pay their workers $15 per hour to assemble the lures, which each require 0.10 hours to make. There are no other costs. They price the lures adding a markup of 50% of manufacturing cost. What is the selling price per unit?

Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the lures for $0.20 per ounce. Each lure requires 1 ounce of materials. They pay their workers $15 per hour to assemble the lures, which each require 0.10 hours to make. There are no other costs. They price the lures adding a markup of 50% of manufacturing cost. What is the selling price per unit?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

ss

Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the lures for $0.20 per ounce. Each lure requires 1 ounce of materials. They pay their workers $15 per hour to assemble the lures, which each require 0.10 hours to make. There are no other costs. They price the lures adding a markup of 50% of manufacturing cost. What is the selling price per unit? $2.55 O $1.70 O $2.25 O There is not enough information provided to calculate the price.
Transcribed Image Text:Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the lures for $0.20 per ounce. Each lure requires 1 ounce of materials. They pay their workers $15 per hour to assemble the lures, which each require 0.10 hours to make. There are no other costs. They price the lures adding a markup of 50% of manufacturing cost. What is the selling price per unit? $2.55 O $1.70 O $2.25 O There is not enough information provided to calculate the price.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS