Ritner Corporation manufactures a product that has the following costs: Per Unit $ 22.50 $14.00 $2.40 Per Year Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $449,800 $ 1.80 $591,900 The company uses the absorption costing approach to cost-plus pricing as described in the text The pricing calculations are based on budgeted production and sales of 29,300 units per year. The company has invested $360,300 in this product and expects a return on investment of 9%. Required: a. Compute the markup on absorption cost. (Round your intermediate and final answer to 2 decimal places.) b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and finel enswer to 2 decimal places.) a Markup percentage on absorption cost bSelling price

Ritner Corporation manufactures a product that has the following costs: Per Unit $ 22.50 $14.00 $2.40 Per Year Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $449,800 $ 1.80 $591,900 The company uses the absorption costing approach to cost-plus pricing as described in the text The pricing calculations are based on budgeted production and sales of 29,300 units per year. The company has invested $360,300 in this product and expects a return on investment of 9%. Required: a. Compute the markup on absorption cost. (Round your intermediate and final answer to 2 decimal places.) b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and finel enswer to 2 decimal places.) a Markup percentage on absorption cost bSelling price

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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