Hi! Is someone can help with this question? B Croup. uses the product cost conce

Question

Hi! Is someone can help with this question? B Croup. uses the product cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing 35,000 units of a New Product B4 are as follows:

oblem B Corp. uses the product cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing 35,000 units of a New Product B4 are as follows: 1. Variable costs: Direct materials Direct labor Factory overhead Selling and administrative expenses Total $3.75 5.45 1.80 3.50 $14.50 Fixed costs: Factory overhead $75,000 37,000 Selling and administrative expenses B Corp. desires a profit equal to a 12.5% rate of return on invested assets of $727,500. (a) Determine the amount of desired profit from the production and sale of Product B4. Determine the total manufacturing costs and the cost amount per unit for the production and sale of 35,000 units of Product B4. Determine the markup percentage for Product B4. Determine the selling price of Product B4. (b) (c) (d) Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places

Explanation / Answer

a) Invested assets 727500 Desired Profit 12.50% Desired Profit=Invested assets*Desired Return % 90937.50 (727500*12.5%) b) Total manufacturing Cost Vraible Cost Direct Material 131250 =3.75*35000 Direct Labour 190750 =5.45*35000 Factory Overhead 63000 =1.8*35000 Selling & Admin Expenses 122500 =3.5*35000 Total Variable Cost 507500 Fixed Cost Factory Overhead 75000 Selling and administrative expenses 37000 Total Fixed Cost 112000 Total Cost 619500 Cost per unit 17.70 =619500/35000 c) Markup %=Desired Profit/Total cost 14.7% =90937.5/619500 d) Selling Price per unit =Cost per unit*(100+markup)% 20.30 =17.7*(100+14.7)%

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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