Jell Corporation uses the total cost concept of product pricing. Below is cost i

Question

Jell Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 58,798 units of its sole product. Jell desires a profit equal to a 24% rate of return on invested assets of $638,025.00. Fixed factory overhead cost $36,275.00 Fixed selling and administrative costs $7,853.00 Variable direct materials cost per unit $4.45 Variable direct labor cost per unit $1.88 Variable factory overhead cost per unit $1.13 Variable selling and administrative cost per unit $4.50

What is the dollar amount of desired profit from the production and sale of the company's product?

Select the correct answer.

a$84,557.00

b$306,252.00

c$153,126.00

d$638,025.00

Explanation / Answer

Given Desired Profitis equal to 24% of the invested assets = 24% * 638025 =$ 153,126/-

Hence the answer is option B.

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.