Techcom is designing a new smartphone. Each unit of this new phone will require $248 of direct materials; $28 of direct labor; $41 of variable overhead; $36 of variable selling, general, and administrative costs; $49 of fixed overhead costs; and $28 of fixed selling. general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $980 per unit. Compute the target cost per unit if the company's target profit is 60% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 1. Total cost per unit 2. Markup per unit 3. Selling price per unit Required 3 $ $ 430 774 Required 2 >

Techcom is designing a new smartphone. Each unit of this new phone will require $248 of direct materials; $28 of direct labor; $41 of variable overhead; $36 of variable selling, general, and administrative costs; $49 of fixed overhead costs; and $28 of fixed selling. general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $980 per unit. Compute the target cost per unit if the company's target profit is 60% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 1. Total cost per unit 2. Markup per unit 3. Selling price per unit Required 3 $ $ 430 774 Required 2 >

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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Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $5.50 per switch. Vista's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Annual fixed costs Variable cost per switch Machine A $632,400 1.78 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 235,000 switches per year and what is the total cost of that alternative? Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Machine B $ 860,100 0.80 Minimum number of switches For each machine, what is the minimum number of switches that…
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