Answer Required Question No. 1 and no.2Provide a complete solution Thank You 12.16Gentex Electrical Corporation is a maker of fuse box for a variety of contractors.Sometime during the year, a customer offered them to purchase 10,000 units, however, a sligntmodification should be made. His staff developed the following data:oong world voOffered price per unitP12.00Direct labor5.00Overhead8.00P25.00TotalThe company desires a gross margin of 15% of the manufacturing costs.Required:1. Assuming the use of cost-plus pricing, setting at the price 15% above themanufacturing costs. What price would be charged for the fuse boxes?2. Would you accept the offer or not? Why?mor160 000 1units of Product X during the year. The

The financial position of the company can be arrived from the income statement prepared by the…

Gentex Electrical Corporation is a maker of fuse box for a variety of contractors. Sometime during the year, a customer offered them to purchase 10,000 units, however, a slight modification should be made. His staff developed the following data: Offered price per unit Direct labor Overhead P12.00 5.00 8.00 P25.00 Total The company desires a gross margin of 15% of the manufacturing costs. Required: 1. Assuming the use of cost-plus pricing, setting at the price 15% above the manufacturing costs. What price would be charged for the fuse boxes? 2. Would you accept the offer or not? Why?

Gentex Electrical Corporation is a maker of fuse box for a variety of contractors. Sometime during the year, a customer offered them to purchase 10,000 units, however, a slight modification should be made. His staff developed the following data: Offered price per unit Direct labor Overhead P12.00 5.00 8.00 P25.00 Total The company desires a gross margin of 15% of the manufacturing costs. Required: 1. Assuming the use of cost-plus pricing, setting at the price 15% above the manufacturing costs. What price would be charged for the fuse boxes? 2. Would you accept the offer or not? Why?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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