Techcom is designing a new smartphone. Each unit of this new phone will require $233 of direct materials; $13 of direct labor; $26 of variable overhead; $21 of variable selling, general, and administrative costs; $34 of fixed overhead costs; and $13 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 170% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $830 per unit. Compute the target cost per unit if the company's target profit is 70% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the selling price per unit if the company uses the total cost method and plans a markup of 170% of total costs. 1. Total cost per unit 2. Markup per unit 3. Selling price per unit

Techcom is designing a new smartphone. Each unit of this new phone will require $233 of direct materials; $13 of direct labor; $26 of variable overhead; $21 of variable selling, general, and administrative costs; $34 of fixed overhead costs; and $13 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 170% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $830 per unit. Compute the target cost per unit if the company's target profit is 70% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the selling price per unit if the company uses the total cost method and plans a markup of 170% of total costs. 1. Total cost per unit 2. Markup per unit 3. Selling price per unit

Name: A Problem 10-4A (Algo) Pricing using total cost, target cost, and vari
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Description: A Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6Techcom is designing a new smartphone. Each unit of this new phone will require $233 of direct materials; $13 of direct labor; $26 ofvariable overhead; $21 of variab

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.3.2MBA: Contribution margin per constraint Using the data and your answers from MBA 12-2, determine the...

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Question Content Area Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.10 per pound and costs $14.15 per pound to produce. Product D would sell for $44.80 per pound and would require an additional cost of $9.70 per pound to produce. The differential cost of producing Product D is a.$11.64 per pound b.$5.82 per pound c.$9.70 per pound d.$7.76 per pound
Example 1Lingkod Company, a manufacturer of furniture sets, is considering to purchase the seat cushions needed for its chairs. The expected purchase price of these seat cushions is P50 per unit. Lingkod has been making its own seat cushions since it started operating. If it would continue to produce these cushions, the company expects to incur the ff costs: Raw materials - P13, Direct labor-P15, variable OH-P5 and Fixed OH (based on the average production requirement of 10,000 units)-P20. Should the company continue to make the seat cushion or buy from outside supplier? Example 2Using the same data in example 1 for Lingkod Company, assume that 40% of the fixed factory OH could be eliminated if the company would discontinue the manufacture of seat cushions. Should the company make or buy the items? Example 3Using the same data in example 1 for Lingkod Company, assume that 40% of the fixed factory OH could be eliminated if the company would discontinue the manufacture of seat cushions.…
Question 4 There is a material, which demand is: 5000 unit/year. We have Reorder Cost: $10, Holding Cost: $4/unit per year. The supplier offers variable Unit Cost as below: Q2999, UC=$5.8 Please help to determine the optimal order quantity
ble cost per unit 1.3 ginal income per REQUIRED Use the information provided below to calculate the following independently: 1.3.1 Net profit 1.3.3 Marginal income per unit that will enable the project to break even 1.3.2 Break-even quantity if the selling price increases to R130 per unit INFORMATION Caprice Limited plans to start Project Star and the following are the forecasts for 2024 Sales Direct materials cost per unit Direct labour cost per unit Variable selling costs Manufacturing overhead costs (all fixed) Fixed selling and administrative costs 50 000 units at R120 per unit R36 R24 10% of sales R841 000 R1 040 000 (2 marks) (2 marks) (4 marks)
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Assume Samsung is designing a new smartphone. Each unit of this new phone is expected to require $285 of direct materials, $10 of direct labor, $30 of variable overhead, $5 of variable selling and administrative costs, and $20 of fixed selling and administrative costs. Required 1. If Samsung uses the variable cost method to set selling prices and plans a markup of 250% of variable costs, what is the expected selling price per unit of this new phone? 2. If instead Samsung uses the total cost method to set selling prices and plans a markup of 220% of total costs, what is the expected selling price per unit of this new phone?
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Assume Apple is designing a new smartphone. Each unit of this new phone is expected to require $230 of direct materials, $10 of direct labor, $20 of variable overhead, and $20 of variable selling and administrative costs. Required1. If Apple uses the variable cost method to set selling prices and plans a markup of 200% of variable costs, what is the expected selling price per unit of this new phone?2. Assume that Apple is a “price taker” and the market sales price for this type of phone is $800 per unit. Compute Apple’s target cost if the company desires a profit of 60% of sales price. expected selling price target cost Apple and Google sell a variety of products. Some products are more profitable than others. Teams of employees in each company make advertising, investment, and product mix decisions. Assume a typical ad costs $800,000 and that the average product for both Apple and Google sells for $400 per unit and generates a contribution margin of 20%. Required1. Estimate how many…