e newoonnect mheducation.com Chapter 23 Pre-Bult Problems 6 Help Save & Exit Sub

Question

e newoonnect mheducation.com Chapter 23 Pre-Bult Problems 6 Help Save & Exit Subm Check my work 4 Steeze Co. makes snowbosards and uses the total cost approach in setting product prices. ts costs for producing 15,500 units follow The company targets a profit of $455700 an this product 10 variable costs per ait Pixed Costs 491,000 1 Administrative 1. Compute the total cost per unit 3. Compute the product's selling price using the satal cost method Butevrencn 2. Compute the markup percentage on total cost (Round your final percentage answer to 1 decimal place) 1 Total cost per unit 2 Markup percertage . Selng price Prev4of6 Next>

Explanation / Answer

Total Cost of 15,500 units: Variable cost: Material 1720500 Labour 558000 OH 480500 Selling 108500 Total Variable cost 2,867,500 Fixed cost: Overheads 481000 Selling 113000 Admin 336000 Total Fixed cost 930,000 Total Cost of 15,500 units: 3,797,500 Divide: Number of units 15500 Total cost per unit 245 Desiredt profit: 455700 Total cost 3,797,500 Markup percentage on Total cost 12% (455700/3797500*100) Selling price per unit: Total cost per unit 245 Add: Markup @12% 29 Selling price per unit: 274

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