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newc tion.com Connect Chegg Study | Guided Solutions and Study Help | Chegg.com HE 23 6 Saved Help Save & Exit Submit Check my work 5 Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 13,500 units follow The company targets a profit of $388,800 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling Fixed Costs $477,000 105,000 309,000 points 107 Overhead 32 Selling 27 Administrative eBook Print 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the product's selling price using the total cost method References Total cost per unit 2. Markup percentage 3. Selling price Mc Graw Hill KPrev 5 of 5 NextExplanation / Answer
Answers
A
Direct material
$ 107.00
B
Direct labor
$ 32.00
C
Overhead
$ 27.00
D
Selling
$ 8.00
E=A+B+C+D
Total Variable cost per unit
$ 174.00
F
Total Units
13500
G=E x F
Total Variable cost
$ 23,49,000.00
H
Total fixed cost [477000+105000+309000]
$ 8,91,000.00
I = G + H
Total cost
$ 32,40,000.00
J
Total Units
13500
K = I/J
Total cost per unit [Answer 1]
$ 240.00
A
Total cost
$ 32,40,000.00
B
Target Profit
$ 3,88,800.00
C= A + B
Total Sales Revenue
$ 36,28,800.00
D
Total Units
13500
E=B/A
Mark up percentage [Answer 2]
12%
F=C/D
Selling price [ Answer 3]
$ 268.80
A
Direct material
$ 107.00
B
Direct labor
$ 32.00
C
Overhead
$ 27.00
D
Selling
$ 8.00
E=A+B+C+D
Total Variable cost per unit
$ 174.00
F
Total Units
13500
G=E x F
Total Variable cost
$ 23,49,000.00
H
Total fixed cost [477000+105000+309000]
$ 8,91,000.00
I = G + H
Total cost
$ 32,40,000.00
J
Total Units
13500
K = I/J
Total cost per unit [Answer 1]
$ 240.00
A
Total cost
$ 32,40,000.00
B
Target Profit
$ 3,88,800.00
C= A + B
Total Sales Revenue
$ 36,28,800.00
D
Total Units
13500
E=B/A
Mark up percentage [Answer 2]
12%
F=C/D
Selling price [ Answer 3]
$ 268.80
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