GoSnow sells snowboards. Each snowboard requires direct materials of $110, direct labor of $35, variable overhead of $45, and wariable selling, general, and administrative costs of $10. The company has fixed overhead costs of $265,000 and fixed selling. peneral, and administrative costs of $335,000. The company has a target profit of $200,000. It expects to produce and sell 10, snowboards. Compute the selling price per unit using the variable cost method. ing price per unit

GoSnow sells snowboards. Each snowboard requires direct materials of $110, direct labor of $35, variable overhead of $45, and wariable selling, general, and administrative costs of $10. The company has fixed overhead costs of $265,000 and fixed selling. peneral, and administrative costs of $335,000. The company has a target profit of $200,000. It expects to produce and sell 10, snowboards. Compute the selling price per unit using the variable cost method. ing price per unit

Name: QS 25-18 (Static) Pricing using variable cost LO P6GoSnow sells snowb
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: QS 25-18 (Static) Pricing using variable cost LO P6GoSnow sells snowboards. Each snowboard requires direct materials of $110, direct labor of $35, variable overhead of $45, andvariable selling. general, and administrative costs of $10. The company h

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

QS 25-16 (Algo) Pricing using total cost LO P6 Garcia Company sells snowboards. Each snowboard requires direct materials of $106, direct labor of $36, variable overhead of $51. and variable selling, general, and administrative costs of $9. The company has fixed overhead costs of $647,000 and fixed selling. general, and administrative costs of $148.000. It expects to produce and sell 10,600 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? Note: Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts. Seling price per unit
Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 60 per unit Factory overhead $144,300 Direct labor 28 Selling and admin. exp. 50,700 Factory overhead 18 Selling and admin. exp. 14 Total $120 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $420,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 5,000 units of cellular phones. Round to two decimal places. Total variable costs $fill in the blank 1 Variable cost amount per unit $fill in the blank 2 b. Determine the variable cost markup percentage for cellular phones.fill in the blank 3 % c. Determine the selling price of cellular phones. Round to…
Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and admin. exp. 140,000 Factory overhead 40 Selling and administrative expenses 25 Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. Total variable costs $fill in the blank 1 Variable cost amount per unit $fill in the blank 2 b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places.fill in the blank 3 % c. Determine the selling price of cellular phones. If…
Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 70 per unit Factory overhead $194,300 Direct labor 32 Selling and admin. exp. 68,200 Factory overhead 21 Selling and admin. exp. 17 Total $140 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $490,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 5,000 units of cellular phones. Round to two decimal places. Total variable costs Variable cost amount per unit b. Determine the variable cost markup percentage for cellular phones. % c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone
PROBLEM 7 Tito Company sells several products. Information of average revenue and costs are as follows: Selling price per unitPhp20.00 Variable costs per unit: Direct materialsPhp4.00 Direct manufacturing labor Php1.60 Manufacturing overhead Php0.40 Selling costsPhp2.00 Annual fixed costs Php96,000 26. Calculate the contribution margin per unit. 27. Calculate the number of units Tito's must sell each year to break even. 28. Determine the breakeven point in peso. 29. Calculate the number of units Tito's must sell to yield a profit of Php144,000. PROBLEM
Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $150 Total variable costs 25 40 Variable cost amount per unit 25 $240 Fixed costs: Factory overhead Selling and admin. exp. Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. $350,000 140,000 a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. % c. Determine the selling price of cellular phones. If required, round to the nearest dollar. per cellular phone
27 Computing breakeven sales No-Slip Co. produces sports socks. The company has fixed costs of $91,080 and variable costs of $0.81 per package. Each package sells for $1.80. Requirements 1. Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.) 2. Find the breakeven point in units and in dollars using the contribution margin approach.
Product Blue Product Red £ £ Selling 12.00 24.00 Variable cost 4.00 8.00 Contribution margin 8.00 16.00 Fixed cost apportioned 200,000 400,000 Budget sales units 140,000 60,000 Required: a) Calculate the breakeven points, for each product and the company as a whole and comment on your findings b) Discuss the merits and demerits of the cost volume profit analysis (CVP)
Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 90 per unit Factory overhead $223,800 Direct labor 41 Selling and admin. exp. 78,600 Factory overhead 27 Selling and admin. exp. 22 Total $180 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $630,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 4,500 units of cellular phones. Round to two decimal places. Total variable costs $fill in the blank 1 Variable cost amount per unit $fill in the blank 2 b. Determine the variable cost markup percentage for cellular phones.fill in the blank 3 % c. Determine the selling price of cellular phones. Round to…
Selling price per unit Variable cost per unit Board feet per unit Monthly demand Chairs $80 $30 2 600 Tables $400 $200 a. 500 chairs and 100 tables b. 600 chairs and 80 tables c. 500 chairs and 80 tables d. 600 chairs and 100 tables 10 100 The company's supplier of hardwood will only be able to supply 2,000 board feet this month. What plan would maximize profits?
eBook Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $330 $160 Skis $420 $240 Poles $40 $20 Their sales mix is reflected in the ratio 8:4:2. If annual fixed costs shared by the three products are $233,200. Determine the break-even point in sales dollars. Break-even point S
Exercise I-Set B Palawan Company must determine a target selling price for one of its products. Cost data relating to the product are as follows: Per Unit P 30 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable administrative and selling expenses 15 5 Fixed administrative and expenses 40 The costs above are based on an anticipated volume of 70,000 units produced and sold each period. The company uses cost-plus pricing, and it has a policy of obtaining target selling prices by adding a markup of 50% of unit manufacturing cost or by adding a markup of 80% of variable costs. Required: 1. Compute the target selling price per unit using absorption costing. 2. Compute the target selling price per unit using contribution costing.